ADVERTISEMENT
  • About Us
  • Contact
  • Advertise
  • Privacy Policy
  • Terms and Conditions
Saturday, September 23, 2023
No Result
View All Result
NEWSLETTER
Cayman Marl Road
  • Home
  • CMR Daily Buzz
  • Cayman’s Youth
  • Parliament
  • Live Show
  • COVID-19
  • Election 2021
  • Legal Notices
  • Entertainment
    • All
    • Events
    • Music
    Miss Universe removes upper age limit

    Miss Universe removes upper age limit

    Love & Hip Hop star fired after calling Spice ‘monkey’

    Love & Hip Hop star fired after calling Spice ‘monkey’

    Jimmy Buffett, ‘Margaritaville’ singer, dies

    Jimmy Buffett, ‘Margaritaville’ singer, dies

    Reggae artist Queen Ifrica accuses dad of rape

    Reggae artist Queen Ifrica accuses dad of rape

    Bob Barker, host of ‘The Price is Right,’ dies at 99

    Bob Barker, host of ‘The Price is Right,’ dies at 99

    Hollywood actors and writers strike

    Hollywood actors and writers strike

    Caymanian Jazz Pitcairn’s work nominated for Emmy award

    Caymanian Jazz Pitcairn’s work nominated for Emmy award

    Camana Bay Cinema charges extra for premium seating to offset operation cost

    Camana Bay Cinema charges extra for premium seating to offset operation cost

    CayMAS apologizes for debris left along parade route

    CayMAS apologizes for debris left along parade route

  • Lifestyle
    • All
    • Food
    • Health
    • Medical Experts
    RUMOR: Dengue Fever in Cayman?

    Dengue fever reaches Cayman

    Accident & Emergency walk-in entrance now accessible

    A&E and Urgent Care Clinic temporarily relocate this weekend

    Food Hygiene training resumes this week

    Food Hygiene training resumes this week

    Health Ministry names incoming Chief Medical Officer

    CMO issues guidance on possession and use of Cannabinol

    German man cured of HIV

    HSA and Red Cross partner to offer free HIV testing

    Woman dies after drinking too much water

    Woman dies after drinking too much water

    UK investigates link between weight-loss drugs and suicidal thoughts

    UK investigates link between weight-loss drugs and suicidal thoughts

    HSA offers new geriatric service for patients 60 and over

    HSA offers new geriatric service for patients 60 and over

    TCHT: Medical Rundown – Bariatric Weight Loss Surgery

    Popular weight loss drugs cause stomach paralysis

    Government introduces mandatory health screening for children

    Symptoms you should not ignore in a child

    Trending Tags

  • Home
  • CMR Daily Buzz
  • Cayman’s Youth
  • Parliament
  • Live Show
  • COVID-19
  • Election 2021
  • Legal Notices
  • Entertainment
    • All
    • Events
    • Music
    Miss Universe removes upper age limit

    Miss Universe removes upper age limit

    Love & Hip Hop star fired after calling Spice ‘monkey’

    Love & Hip Hop star fired after calling Spice ‘monkey’

    Jimmy Buffett, ‘Margaritaville’ singer, dies

    Jimmy Buffett, ‘Margaritaville’ singer, dies

    Reggae artist Queen Ifrica accuses dad of rape

    Reggae artist Queen Ifrica accuses dad of rape

    Bob Barker, host of ‘The Price is Right,’ dies at 99

    Bob Barker, host of ‘The Price is Right,’ dies at 99

    Hollywood actors and writers strike

    Hollywood actors and writers strike

    Caymanian Jazz Pitcairn’s work nominated for Emmy award

    Caymanian Jazz Pitcairn’s work nominated for Emmy award

    Camana Bay Cinema charges extra for premium seating to offset operation cost

    Camana Bay Cinema charges extra for premium seating to offset operation cost

    CayMAS apologizes for debris left along parade route

    CayMAS apologizes for debris left along parade route

  • Lifestyle
    • All
    • Food
    • Health
    • Medical Experts
    RUMOR: Dengue Fever in Cayman?

    Dengue fever reaches Cayman

    Accident & Emergency walk-in entrance now accessible

    A&E and Urgent Care Clinic temporarily relocate this weekend

    Food Hygiene training resumes this week

    Food Hygiene training resumes this week

    Health Ministry names incoming Chief Medical Officer

    CMO issues guidance on possession and use of Cannabinol

    German man cured of HIV

    HSA and Red Cross partner to offer free HIV testing

    Woman dies after drinking too much water

    Woman dies after drinking too much water

    UK investigates link between weight-loss drugs and suicidal thoughts

    UK investigates link between weight-loss drugs and suicidal thoughts

    HSA offers new geriatric service for patients 60 and over

    HSA offers new geriatric service for patients 60 and over

    TCHT: Medical Rundown – Bariatric Weight Loss Surgery

    Popular weight loss drugs cause stomach paralysis

    Government introduces mandatory health screening for children

    Symptoms you should not ignore in a child

    Trending Tags

No Result
View All Result
Cayman Marl Road
No Result
View All Result

Cayman SEZC cryptocurrency company sued over alleged fraud

by CMR
June 27, 2021
in Business
0
Cayman SEZC cryptocurrency company sued over alleged fraud

Craig Sproule

88
SHARES
Share on FacebookShare on TwitterShare on Whatsapp

“Almost nothing in these materials was true. The marketing produced the illusion of a genuine software startup to perpetuate a massive investment fraud. The startup could never have produced any of the software it claimed to be producing. It lied about the background of its founder, and it misled investors as to the very existence of functional software in order to induce them to invest. NO functional software ever exited.”

 

(CMR) A Cayman Special Economic Zone Company (SEZC) is being sued for alleged fraud in the United States District Court Middle District of Florida Jacksonville division court documents from June 24 reveal. The Plaintiffs are alleging numerous violations of the Securities and Exchange Act and SEC Rule and common law fraud by a Cayman crypto company registered as Crowd Machine SEZC.

The company's Cayman address is listed as 236 Britcay House on Eastern Avenue, George Town, Grand Cayman. DCI has them registered with a valid business license until November 2022.

Registered in Cayman

Plaintiff George Bachiashvili shared that he purchased $2.1 million of CMCT tokens in February 2018 and Plaintiff Jason Bonayer purchased $125,000 in tokens. They both still have their tokens which they claim are worthless.

The pair claims that they were offered the opportunity to invest in this software business described as “a startup developing a cryptocurrency-based ‘no-code' computer application referred to as “the Crowd Computer.”

The lawsuit claims that the “driving force” behind the business was Craig Sproule and that Crowd Computer software is owed by Metavine; a company Sproule founded in 2013. The company was formed in 2017 along with a related company incorporated in Delaware. The purpose of the company was to perpetually license the software and then issue an offering of cryptocurrency tokens through cryptocurrency exchanges.

The two exchanges used are based in Seychelles.

Craig Sproule Blockchain Expo Europe 2018

The Plaintiffs provided investment capital by purchasing the tokens – Crowd Machine Compute Token; a decision they claim was made based on false marketing information and a white paper provided by the Defendants. The company claimed that their software was being used by “major Fortune 500 companies” who had already made “significant investments in the technology”.

It is also alleged to have said that they were already generating revenue and had global partners – information which is now said to have been completely false and “a total fabrication.”

It also used a Telegram instant message channel to make the false representations that have now been erased and scrubbed from the internet. Online searches reveal people thinking that this technology would be “revolutionary.”

The complaint states that in April 2018 it started selling tokens to the general public through unregistered foreign exchanges to lure in more investors and speculators to purchase tokens; despite never having a functional product. The listing on foreign exchanges was an attempt to avoid SEC and US regulators. It also alleges that in contravention of SEC cryptocurrency regulations the company was never duly registered with the SEC.

“The Defendants Crowd Machine and Sproule knowingly and surreptitiously used third parties, Roger Tichenor and Charlie Shrem, also named Defendants herein, to offer investment in Crowd Machine to as many other investors as possible including Plaintiffs Jason Bonayer and George Bachiashvil.”

The Plaintiffs claim that they spent millions of dollars in token purchases and the company took in over $30 million in investment money with no viable product to show for the funds. There appear to be no real prospects of a product ever being developed and they alleged the entire thing is a fraud. They are seeking losses for the original investment and losses on subsequent purchase of CMCT on foreign exchanges.

Defendant and CEO Craig Sproule is an Australian citizen residing in San Jose California. He made his debut in Silicon Valley in 2013 by proclaiming he was an experienced programmer and software engineer from Australia with extensive experience in software systems integration. He was able to raise almost a million dollars of equity investment almost immediately.

The multiple other listed defendants are all US citizens living in various states including Florida.

“As Crowd Machine never had any functional software, no functional business, and comprised substantially a Ponzi scheme, the price of CMCT promptly
plummeted to near zero, rendering the investment worthless.”

 

Related posts:

AL Thompson's buys Cox Lumber
CUC seeks qualified natural gas supplier
Deputy chair breaches permit law
Interest in Cayman Insurance Industry remains strong
Share your vote!


No, thanks.
How do you feel after reading this?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid
Tags: Craig SprouleCrowd Machine SEZC
CMR

CMR

Related Posts

AL Thompson’s buys Cox Lumber

AL Thompson’s buys Cox Lumber

by Renae Stampp
September 15, 2023
0

(CMR) Effective today, 15 September, Cox Lumber Ltd. has been purchased by A. L. Thompson’s and will join the A....

Premier calls for diversity and inclusion on Government-appointed bodies

Premier: Cayman is not broke

by Renae Stampp
September 12, 2023
0

(CMR) Premier of the Cayman Islands and Minister of Finance Wayne Panton said there is no plan to cut the...

CUC seeks qualified natural gas supplier

CUC seeks qualified natural gas supplier

by Renae Stampp
September 7, 2023
0

(CMR)  In an effort to reduce the cost of energy production and reduce carbon emissions, the Caribbean  Utilities Company, Ltd...

Deputy chair breaches permit law

Deputy chair breaches permit law

by CMR
August 31, 2023
0

(CMR) The Deputy Chair of the Business Staffing Plan Board has been called into disrepute after at least one of her...

Interest in Cayman Insurance Industry remains strong

Interest in Cayman Insurance Industry remains strong

by Renae Stampp
August 30, 2023
0

(CMR) The Cayman Islands Monetary Authority (CIMA) recently released licensing statistics for the second quarter of 2023, which demonstrate the...

CAL approved for TSA PreCheck

CAL approved for TSA PreCheck

by CMR
August 29, 2023
0

(CMR) Some passengers traveling on Cayman Airways Limited (CAL) will now be eligible to apply for expedited security screening at...

Next Post
How to discipline your children without destroying their self-esteem

How to discipline your children without destroying their self-esteem

Recent News

Cupid claims extramarital affair in Tortuga robbery case

Concession increased for first-time Caymanian homebuyers

September 23, 2023
Man arrested for threats to kill at public beach

Man arrested for threats to kill at public beach

September 22, 2023
TCHT: Consumer Fridays

TCHT: Consumer Fridays

September 22, 2023
Storm surge sensors installed in Grand Cayman

Storm surge sensors installed in Grand Cayman

September 22, 2023
Pensions Bill opens for consultation

Seymour resigns from PACT Government

September 22, 2023
Family alleges police misconduct over arrest involving Down Syndrome minor

Arson suspected in Detention Centre fire

September 22, 2023
  • About Us
  • Contact
  • Advertise
  • Privacy Policy
  • Terms and Conditions

Copyright © 2023 CMR Cayman's Premier News Source - All Rights Reserved

No Result
View All Result
  • Home
  • Ask The Marl Road
    • Consumer Protection
      • Scammers
  • Breaking News
  • Business
    • Finance
  • Cayman Crime Watch
  • Cayman Small Business
  • Cayman Wellness
  • Cayman’s Youth
  • Celebration of Life
  • Community Notices/Events
    • Accidents
    • Police
    • Weather
  • Consumer Protection
    • Scammers
    • COVID-19
    • What would you do?
  • CMR Videos
    • The Cold Hard Truth
    • Cayman Voices
  • Court Cases
    • Civil
    • Criminal
  • Election 2021
  • Entertainment
    • Events
    • Music
  • Events
  • Family
    • Education
    • Fury Friends
  • Government
    • Road Closures
  • Investigative Reports
  • Legal Notices
  • Lifestyle
    • Food
    • Health
    • Medical Experts
  • Live Show
  • News Roundup
  • Opinions
    • Polls
    • Cartoons
  • Politics
    • Parliament
  • Regional News
  • Rumor Has It
  • Science
  • Social Media Happenings
    • Jackass of the Day!
    • Lost & Found
  • Sports
  • Tech News
  • Weird & Unusual News
  • World News
  • Sponsored Content

Copyright © 2023 CMR Cayman's Premier News Source - All Rights Reserved