A federal court has ordered James Hardy to pay back money he stole through Nasgo, a cryptocurrency Ponzi scheme that bilked investors starting in late 2017.

The SEC filed for judgment against Hardy on February 28th. The court granted it nine days later on March 7th. Hardy now faces an order to disgorge his ill-gotten gains, pay interest on those gains dating back to December 1st, 2017, and fork over a civil penalty. The exact dollar amount remains to be determined.

According to the SEC's April 2022 complaint, Hardy pulled at least $1.3 million from the scheme. That figure will likely form the baseline for what he owes, though final calculations could be substantially higher once interest is factored in.

Hardy's judgment marks another conviction in the SEC's broader crackdown on Nasgo, which operated as a multilevel marketing scam wrapped in crypto language. The scheme promised investors unrealistic returns while funneling money to those at the top of the pyramid.

Co-founder Eric Tippetts already settled with the SEC last August. Accomplice Maurice Chelliah faced judgment in December. Both men agreed to financial penalties as part of their settlements.

One major player remains in the SEC's crosshairs: Steven Chiang, who also goes by the name Cyrus Kong. Chiang was the primary beneficiary of the entire operation, but the SEC has not publicly disclosed how much money he personally extracted from investors. His lawyers are currently negotiating with the SEC over a settlement.

A case management conference is set for April 24th to track the progress of remaining litigation.

The Nasgo case reflects a broader pattern of crypto schemes that have devastated retail investors over the past five years. Regulators have grown more aggressive in pursuing the masterminds behind these operations, securing judgments and settlements that force defendants to return stolen money and pay penalties on top of that.

Hardy's judgment sends a clear message: federal authorities are methodically working through the roster of Nasgo operators and will extract financial consequences from each one. The remaining question is how much Chiang will ultimately be forced to return and whether settlement negotiations yield a resolution before the April hearing.

🤖 Quick Answer

What did the federal court order James Hardy to do following the SEC's judgment?
The federal court ordered James Hardy to disgorge his ill-gotten gains obtained through the Nasgo cryptocurrency Ponzi scheme, pay interest on those gains retroactive to December 1st, 2017, and pay a civil penalty. Hardy had extracted at least $1.3 million from the fraudulent scheme, which will likely serve as the baseline for his total obligations.

When did the SEC file for judgment against James Hardy in the Nasgo case?
The SEC filed for judgment against James Hardy on February 28th. The federal court granted the judgment nine days later on March 7th, marking a swift legal process in the enforcement action against the Nasgo cryptocurrency Ponzi scheme operator.

How much money did James Hardy extract from the Nasgo cryptocurrency scheme?
According to the SEC's April 2022 complaint,

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