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Former SPAC Leader Involved in $5 Million Crypto Fraud!! See More…

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The former head of two special purpose acquisition companies, Cooper Morgenthau admitted to taking money from the three SPACs he formed and embezzling it. The Securities and Exchange Commission requested, and the judge granted, a permanent injunction barring his future participation in the management of or trading in any publicly traded business due to his violations of the Securities Act and the Exchange Act. The amount of compensatory and statutory damages due will be discussed in subsequent processes.

Crypto Fraud: Former SPAC Leader Pleads Guilty

As per the reports, Copper Morgenthau started to trade crypto and meme stocks in June 2021. Later, he falsified the bank statements to cover up or completely demolish the losses. In order to somewhat offset his losses, Morgenthau transferred money from the second firm and made fraudulent representations to the SEC regarding the first SPAC’s IPO filing.

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Also Read: India loses 3.8 billion USD because of one law !!

A SPAC with Morgenthau serving as the Chief Financial Officer, African Gold Acquisition Corp. was established in October 2020 by Morgenthau and others. But according to reports, he used money from the business up until his dismissal in August 2022 to finance his own trading in meme stocks and subsequently crypto asset securities. He lost the entire sum.

Morgenthau will face imprisonment of 20 years after he traded $5 million in crypto and meme stocks and lost all of it. Moreover, he’s being accused of participating in crypto and meme stocks trading by funds raised for the African Gold Acquisition Cooperation. He was assigned as Chief Financial Officer in the company.

Cooper pled guilty for violating five combined counts of Securities Act and Exchange Act. Furthermore, he’s been banned from participating in any trading process.

Also Read: FTX Crypto Assets Worth $3.5 billion Seized!!

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