BitConnect Promoter Faces $731K Disgorgement Push From SEC
The SEC is gunning for Michael Noble's wallet. Nearly four years after settling fraud allegations tied to the infamous BitConnect scheme, the regulator filed a motion in September demanding he cough up $731,281 in ill-gotten gains, plus interest and penalties.
Noble spent seven months in 2017 and early 2018 flooding YouTube with promotional videos for BitConnect's "lending program." He posted multiple times a day, sometimes linking directly to the investment platform. At least 1,000 people bit. They handed over their money thinking they were getting into a legitimate investment opportunity. They weren't.
BitConnect rewarded Noble handsomely for his work. The company paid him roughly $731,281 in referral fees and development fund payments based on how many investors he brought through his videos. He did all this without a broker-dealer license. BitConnect never registered its securities with the SEC either. Both are federal crimes.
The whole operation was a Ponzi scheme. Investors lost millions before regulators shut it down.
When Noble settled with the SEC in 2021, he agreed not to fight the details of the agency's complaint. That settlement, the SEC argues, means he can't challenge the numbers now. Citing the 2015 case SEC v. Juno Mother Earth Asset Mgmt., the regulator says Noble is bound by the facts already accepted in his settlement.
The SEC wants the court to order Noble to return all $731,281, tack on $293,703.36 in pre-judgment interest, and slap him with a $50,000 civil penalty. That would bring the total hit to roughly $1.07 million.
Noble had until mid-October to file a response. The case then made its way toward oral arguments scheduled for late November.
Things got complicated in November when Noble requested permission to appear in person at the hearing. The court granted his request but then postponed the oral arguments to allow time for rescheduling.
The hearing is now set for January 14th, 2025. Noble will get his chance to argue why the SEC's numbers don't add up, though his legal options are limited given his prior settlement agreement. Whatever he says will likely fall short of swaying the court unless he can convince the judge that the SEC miscalculated the actual gains he pocketed from the scheme.
For the 1,000-plus investors who lost money to BitConnect, the outcome matters little. Money clawed back from Noble won't return their vanished savings. But it sends a message: promoters who help orchestrate financial fraud will pay for it, eventually.
🤖 Quick Answer
What is the SEC seeking from Michael Noble in the BitConnect case?The SEC filed a motion in September seeking $731,281 in disgorgement from Michael Noble, plus prejudgment interest and civil penalties. The amount corresponds to referral fees and development funds Noble allegedly received from BitConnect while promoting its fraudulent lending program through YouTube videos during 2017 and early 2018.
Who is Michael Noble in relation to BitConnect?
Michael Noble was a prominent BitConnect promoter who spent approximately seven months in 2017 and early 2018 creating and publishing promotional YouTube videos for BitConnect's lending program. He posted multiple times daily, sometimes including direct referral links, and attracted at least 1,000 investors to the platform.
What was BitConnect and why was it considered fraudulent?
BitConnect was a cryptocurrency investment scheme that offered a purported lending program promising substantial returns. The SEC and
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