The US SEC also filed a lawsuit against Hogg for its promotion of DIG tokens.
The Ontario Securities Commission (OSC) has filed a lawsuit against Troy Richard James Hogg for selling unregistered securities in an ICO where he raised $51 million.
According to a press release, the OSC alleged that Hogg and his companies, Cryptobontix Inc, Arbitrade Exchange Inc., and Arbitrade Ltd. promoted and sold Dignity tokens (formerly known as Unity Ingot) between 2017 and 2019.
The regulator continued that Hogg promoted the tokens using false representations, including claiming that Gold Bullion endorses the tokens in promotional materials.
Hogg neither did file a prospectus for token distribution nor did he obtain the necessary registration for trading activities.
Additionally, it accuses Hogg and affiliated corporate entities of defrauding investors by using a substantial portion of the funds for unrelated purposes, such as the purchase of real estate. According to the statement of allegations, the OSC obtained assistance from the United States Securities and Exchange Commission in the case.
The SEC also files a lawsuit against Hogg
Meanwhile, the SEC has also filed a lawsuit against Hogg and other residents of the country for selling unregistered securities. He announced the charges filed today in the United States District Court for the Southern District of Florida.
According to the commission, the DIG token was pumped between May 2018 and January 2019 with “false and misleading” press releases and a press conference.
SEC Targets Players from 2007 ICO Boom
The case against Hogg is another instance of securities regulators pursuing cases against individuals and companies that promoted and sold tokens during the 2017 ICO boom.
Last month, the SEC filed a lawsuit against Ian Balina for promoting Sparkster SPRK tokens in 2018. Balina is a popular cryptocurrency promoter with his YouTube channel, Diary of Self-Made Man. He now runs a crypto investment research firm: Token Metrics.
The SEC accuses him of selling unregistered securities, and failing to disclose that he did indeed receive funds for the tokens he was promoting.
Balina will fight SEC accusations
Last September 19, Balina, in a written statement posted on his website, says the SEC’s claims are totally unfounded. According to the influencer, he only invested $100,000 in Sparkster and says there is “no evidence” that he received any kind of bonus from the firm.
“Mr. Balina also did not benefit from his purchase of Sparkster tokens. In any event, Mr. Balina is a potential victim of fraud and misrepresentation by the Sparkster team, like other investors,” the notice states.
On Twitter, Balina said he is “thrilled to make this fight public.” He said he will fight the charges in court to the end and has turned down a deal “so they have to prove themselves.”
Balina has said that he will fight all accusations on behalf of the crypto community. He claims that the regulator’s complaints against him “is a gross exaggeration in all respects.”
The crypto promoter is now asking the community to fund his defense against the regulator. He shared a Gofundme link, and also requested crypto donations on Ethereum.
“Due to the costly and exhaustive process ahead, an Ian Balina Legal Crimes Fund has been created to help with legal costs,” he tweeted.
By Audy Castaneda
