All that glitters isn’t gold in Kent Swig’s adventures in cryptocurrency enterprise, which is dealing with extra issues attributable to a lawsuit concentrating on high government Stephen Braverman.
The Securities and Trade Fee filed a lawsuit towards Braverman, accusing him of perpetrating a pump-and-dump scheme for a cryptocurrency predating his partnership with Swig, Insider reported. Swig shouldn’t be accused of wrongdoing within the lawsuit, which was filed on Sep. 30 within the Southern District of Florida.
Braverman co-created Dig, a coin backed by gold, based on the SEC civil go well with. He and three others bought $36.8 million price of cash to retail buyers; the SEC claims it was “extremely unlikely” the gold upholding that worth ever existed.
The SEC is seeking to compel Braverman and the co-conspirators to repay the alleged fraud victims, in addition to curiosity and different penalties. They is also banned from performing as company officers or administrators, which might power Braverman’s removing as CEO and president of Dignity Gold, which mints Swig’s Digau cash.
Swig instructed Insider that Braverman was “defending himself vigorously towards these baseless allegations” and searching for to have the case dismissed.
The spokesperson instructed Insider Swig was not concerned within the creation of the Dig coin and the 2 are “unrelated,” however the investor beforehand instructed the outlet his agency would supply free tokens to holders of Braverman’s coin.
The go well with is the most recent headache for Swig’s Dignity Gold.
Funding agency Lincoln International this summer sued Swig and his agency, Helmsley Spear, over unpaid lease for a subtenant area at 444 Madison Avenue. Swig is being sued as a result of he personally assured the workplace lease for 15,000 sq. ft, the place Dignity Gold is likely one of the occupants.
Swig launched his cryptocurrency venture in April 2021, saying his Digau coin could be tied to gold (similar to the Dig coin Braverman is being sued about). Swig’s agency stated it will be capable of extract gold from mines in Arizona, California and Nevada with the help of Apache Mill Tailings.
Nevertheless, Questions emerged almost immediately concerning the enterprise and points linked to the mining agency. Dignity Gold claimed in April that it had secured mining rights for 80 acres with a purported $214 billion in gold, silver, platinum and “uncommon earth components” ready to be found.
Virtually two years into the enterprise, Dignity Gold has but to start out mining, although a spokesperson for Swig instructed Insider the filings of full geological surveys of the undisclosed mining websites with the SEC was coming within the subsequent two to a few months.
— Holden Walter-Warner