Following years of delays, there is finally some movement on the SEC’s BitConnect promoter case.

On July 8th the court ordered the parties in the SEC’s BitConnect promoter case to file a status update.

On July 15th the SEC filed a Status Report, providing insight into why proceedings against Trevon James (right) and Craig Brown had stalled.

The Commission served Defendant Brown with the Summons and Complaint on June 12, 2021.

The Commission served Defendant Grant by alternative service through a series of publications, March 29, 2022 through May 5, 2022.

Trevon James has failed to file an answer to the SEC’s Complaint. Grant’s time to answer the Complaint hasn’t started, owing to the proceedings ordered stayed in December 2021.

The DOJ’s granted stay pending the outcome of related criminal proceedings against BitConnect founder Satish Kumbhani and US BitConnect executive Glenn Arcaro (right).

Arcaro was sentenced to 38 months in prison in September 2022. Kumbhani, an Indian national, remains at large. Kumbhani is believed to be hiding in India or Dubai.

With the DOJ unable to bring Kumbhani to justice, the SEC’s Bitconnect promoter case has remained frozen since 2021.

After conferring with the DOJ, the SEC informed the court;

It is DOJ’s position that a stay should remain in place through the conclusion of the Kumbhani Case, but that DOJ has no objection to limiting the stay to apply to discovery only.

Restricting the SEC’s BitConnect promoter case stay to discover only allows proceedings against the remaining defendants to continue.

Writes the DOJ on what it intends to do if the stay is lifted;

The Commission intends to

(1) seek a default judgment as to Defendant Brown;

(2) litigate the claims against Defendant Grant, to the extent he timely files an Answer, or seek a default judgment as to Grant if he fails to respond to the Complaint; and

(3) move for monetary remedies against Defendant Noble, which the SEC understands Noble intends to oppose.

Michael Noble (right) settled the SEC’s fraud allegations against him in 2021.

While Noble’s settlement saw him agree to pay disgorgement of ill-gotten gains, interest and a civil penalty, it seems the amounts are in dispute.

Following the SEC’s filed Status Report, the court ordered to file an application to modify the stay to discovery only.

The SEC did so July 18th, and the court signed off on the application on July 19th.

As I understand it, this now means Craig Grant has until approximately August 18th (a Sunday) to file his answer.

Failing which, the SEC will request an Entry of Default from the Court Clerk. Sometime after that, motions for default judgment against James and Grant will be filed.

The SEC’s monetary remedies motion against Noble can be filed at any time.

Respectively the SEC alleges James, Grant and Noble stole at least $480,000, $1.3 million and $730,000 from BitConnect investors.

Following BitConnect’s collapse in 2018, Michael Noble went underground. Trevon James and Craig Grant continue to post on social media.

Trevon James was publicly promoting crypto scams on his “Crypto Trvon” YouTube channel up until three months ago.

Since June 2024, James’ promotion is only viewable by paid subscribers to his channel.

James also tried to reinvent himself as a gaming streamer at “Trvon FPS”. That channel was abandoned three months ago.

Craig Grant has been living off stolen BitConnect investor funds in Jamaica since fleeing the US in 2021.

Grant is still believed to be hiding out at a family property northwest of Albert Town. Satellite photos reveal the property has received extensive renovations since Grant moved in.

Despite collectively stealing millions from consumers, beyond Glenn Arcaro no criminal charges have been filed against BitConnect’s top US promoters.

Based on DOJ filings, BehindMLM has been anticipating criminal charges since 2021. Given the whereabouts of everyone except Satish Kumbhani is known, it’s increasingly looking like SEC civil charges might be the end of it.

 

Update 20th August 2024 – In an August 19th Status Report the SEC has confirmed neither Trevon James or Craig Grant have filed an answer.

The SEC has proposed to the court it intends to file for default judgment against James and Brown by September 18th. A disgorgement, prejudgment interest and monetary penalty filing with respect to Michael Noble will also be filed by this date.

Following any responses and then replies filed by the SEC, an order on the motions is then expected sometime after November 1st, 2024.