SEC Sues Chiang & Tippetts for Nasgo & ShareNode Securities Fraud

A federal securities lawsuit exposes a years-long cryptocurrency scam that bilked investors out of millions through two interconnected schemes marketed as blockchain revolution.

The Securities and Exchange Commission has charged Steven Chiang (also known as Cyrus Kong), Eric Tippetts, James Hardy, and Maurice "Butch" Chelliah with operating Ponzi schemes under the guise of Nasgo and ShareNode.

Chiang launched Nasgo in December 2017, five years after starting NSG token development. He brought in Tippetts, whom he'd known since 2012, as a partner to peddle what amounted to a typical cryptocurrency pump-and-dump operation. The two made extravagant promises to early investors: automatic consistent payments in NSG tokens that would skyrocket in value as demand increased, tens of thousands of new clients signing up daily, and millions joining within two years. They marketed Nasgo as the "world's first trillion dollar blockchain."

The hook was a tiered investment structure. For 1 Bitcoin or 25 Ethereum—worth roughly $16,625 and $20,475 at the time—investors could buy "Founding Delegate" positions that promised 25,000 NSG tokens upfront plus an annual share of 8.5 million additional tokens. The pitch was simple: get in early, reap passive returns, and profit as later investors poured money in.

The reality was far different. By May 2018, only about 40 Founding Delegate positions had sold in the United States, generating perhaps $837,000. The 1,000 positions Chiang and Tippetts claimed to offer remained mostly empty.

But Tippetts didn't let facts get in the way. On May 4, 2018, he posted a YouTube video declaring the Founding Delegate interests completely sold out. Two months later, on a July call he hosted for supposed Founding Delegates, Tippetts made the same false claim again—this time to people on a call for which he'd sent just 42 email invitations.

ShareNode appeared shortly after, positioned as Nasgo's marketing arm and allegedly powered by the NSG infrastructure. Tippetts brought in James Hardy, an MLM veteran, along with associate Maurice Chelliah, to move the scheme forward. ShareNode marketed an unregistered digital asset called the SNP token to affiliate investors, again promising passive returns paid in SNP and NSG tokens.

ShareNode sucked in over $10 million from affiliate investors before collapsing. Like Nasgo before it, the operation was designed with one goal: extract cash from people chasing the next big thing in cryptocurrency, with earlier investors hoping to cash out before the whole structure imploded.

The SEC's complaint documents a textbook Ponzi operation dressed in blockchain language. What Chiang, Tippetts, Hardy, and Chelliah built wasn't a trillion-dollar blockchain. It was a machine built to separate people from their money through false promises and audacious lies.

🤖 Quick Answer

What is the SEC lawsuit against Chiang and Tippetts regarding?
The Securities and Exchange Commission filed charges against Steven Chiang, Eric Tippetts, James Hardy, and Maurice Chelliah for operating Ponzi schemes through Nasgo and ShareNode platforms. The defendants allegedly defrauded investors of millions through interconnected cryptocurrency schemes promising automatic token payments and blockchain revolution benefits.

When did Nasgo launch and who were its operators?
Nasgo was launched in December 2017 by Steven Chiang, with Eric Tippetts joining as partner. Chiang had previously worked on NSG token development for five years. The pair operated what investigators characterized as a cryptocurrency pump-and-dump scheme targeting early investors through fraudulent promises and exaggerated claims.

What fraudulent promises were made to investors?
The defendants promised early investors automatic consistent payments in NSG tokens and marketed the

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