• About Us
  • Contact
  • Advertise
  • Privacy Policy
  • Terms and Conditions
Sunday, February 5, 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
    World-class Ironshore Studios opens in Cayman

    World-class Ironshore Studios opens in Cayman

    Dancehall artist Spice suffered complications during surgery?

    Spice to perform in Cayman after postponing show last year

    Julie Mango named Best Jamaican Social Media Personality

    Julie Mango named Best Jamaican Social Media Personality

    Chloe Powery-Doxey off to Miss Universe pageant

    Chloe Powery-Doxey off to Miss Universe pageant

    Miss Universe to be aired by streaming service Roku

    Miss Universe to be aired by streaming service Roku

    Bob Marley’s grandson dies

    Bob Marley’s grandson dies

    ‘Ellen DeGeneres Show’ DJ Stephen ‘tWitch’ Boss dead by suicide

    ‘Ellen DeGeneres Show’ DJ Stephen ‘tWitch’ Boss dead by suicide

    Celine Dion diagnosed with incurable disease

    Celine Dion diagnosed with incurable disease

    Bob Marley immersive experience in the US next year

    Bob Marley immersive experience in the US next year

  • Lifestyle
    • All
    • Food
    • Health
    • Medical Experts
    HSA opens adolescent behavioral health center

    HSA opens adolescent behavioral health center

    Health Insurance Commission monitoring Cayman First

    Health Insurance Commission monitoring Cayman First

    False: No flight restrictions to Cayman due to COVID

    False: No flight restrictions to Cayman due to COVID

    Long Term Residential Mental Health project not completed

    Long Term Residential Mental Health project not completed

    Dr. Marc Lockhart leaves Mental Health Commission

    Dr. Marc Lockhart leaves Mental Health Commission

    Heart Fund encourages everyone to get CPR training

    Heart Fund encourages everyone to get CPR training

    Health Ministry names incoming Chief Medical Officer

    COVID-19 “XBB Variant” info not issued by Ministry of Health

    Clear masks available for HSA hearing impaired patients

    Clear masks available for HSA hearing impaired patients

    New treatment for acid reflux in the Caribbean

    New treatment for acid reflux in the Caribbean

    Health Ministry names incoming Chief Medical Officer

    One COVID-19 related death reported

    Trending Tags

  • Home
  • CMR Daily Buzz
  • Cayman’s Youth
  • Parliament
  • Live Show
  • COVID-19
  • Election 2021
  • Legal Notices
  • Entertainment
    • All
    • Events
    • Music
    World-class Ironshore Studios opens in Cayman

    World-class Ironshore Studios opens in Cayman

    Dancehall artist Spice suffered complications during surgery?

    Spice to perform in Cayman after postponing show last year

    Julie Mango named Best Jamaican Social Media Personality

    Julie Mango named Best Jamaican Social Media Personality

    Chloe Powery-Doxey off to Miss Universe pageant

    Chloe Powery-Doxey off to Miss Universe pageant

    Miss Universe to be aired by streaming service Roku

    Miss Universe to be aired by streaming service Roku

    Bob Marley’s grandson dies

    Bob Marley’s grandson dies

    ‘Ellen DeGeneres Show’ DJ Stephen ‘tWitch’ Boss dead by suicide

    ‘Ellen DeGeneres Show’ DJ Stephen ‘tWitch’ Boss dead by suicide

    Celine Dion diagnosed with incurable disease

    Celine Dion diagnosed with incurable disease

    Bob Marley immersive experience in the US next year

    Bob Marley immersive experience in the US next year

  • Lifestyle
    • All
    • Food
    • Health
    • Medical Experts
    HSA opens adolescent behavioral health center

    HSA opens adolescent behavioral health center

    Health Insurance Commission monitoring Cayman First

    Health Insurance Commission monitoring Cayman First

    False: No flight restrictions to Cayman due to COVID

    False: No flight restrictions to Cayman due to COVID

    Long Term Residential Mental Health project not completed

    Long Term Residential Mental Health project not completed

    Dr. Marc Lockhart leaves Mental Health Commission

    Dr. Marc Lockhart leaves Mental Health Commission

    Heart Fund encourages everyone to get CPR training

    Heart Fund encourages everyone to get CPR training

    Health Ministry names incoming Chief Medical Officer

    COVID-19 “XBB Variant” info not issued by Ministry of Health

    Clear masks available for HSA hearing impaired patients

    Clear masks available for HSA hearing impaired patients

    New treatment for acid reflux in the Caribbean

    New treatment for acid reflux in the Caribbean

    Health Ministry names incoming Chief Medical Officer

    One COVID-19 related death reported

    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

87
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:

Little Cayman residents petition OfReg
Compass Media to close print shop permanently
Crypto company sues CIMA for rejecting license application
Water Authority celebrates 40th anniversary
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

Little Cayman residents petition OfReg

Little Cayman residents petition OfReg

by CMR
January 25, 2023 - Updated on January 26, 2023
0

(CMR) Over 95 Little Cayman residents signed a petition complaining to the Utility Regulation and Competition Office (OfReg) about "service...

Compass threatens legal action against CMR

Compass Media to close print shop permanently

by Renae Stampp
January 24, 2023
0

(CMR)  Several redundancies are now looming at Compass Media as the parent company of the Cayman Compass and Compass Print...

Crypto company sues CIMA for rejecting license application

Crypto company sues CIMA for rejecting license application

by Renae Stampp
January 20, 2023
0

(CMR) A company that has cease-and-desist proceedings against it in the United States and a fine of $22.5 million has...

Water Authority re-opens with surname system still in place

Water Authority celebrates 40th anniversary

by Renae Stampp
January 13, 2023
0

(CMR) Water Authority – Cayman is celebrating a significant milestone in 2023 – 40 years of service to the Cayman...

Physicians refusing Cayman First

Physicians refusing Cayman First

by CMR
January 12, 2023
0

"We are still having major issues getting payment from Cayman First. I know you posted about them a couple of...

Little Cayman flights cancelled

Little Cayman flights cancelled

by CMR
January 9, 2023 - Updated on January 11, 2023
0

(CMR) Cayman Airways Limited (CAL) was advised today by the Cayman Islands Fire Service that the fire truck in Little...

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

How to discipline your children without destroying their self-esteem

Recent News

Man hospitalized following altercation at bar

Man hospitalized following altercation at bar

February 4, 2023
Suspected Chinese spy balloon shot down in the US

Suspected Chinese spy balloon shot down in the US

February 4, 2023
Increase in thefts from motor vehicles

RCIPS warns of increase in theft from vehicles

February 4, 2023
Armed men rob pregnant woman on Town Hall Road

Man armed with machete robs two in George Town

February 4, 2023
Cabinet waives passport fees for seniors

UK passport fees increase as of February 2

February 4, 2023
Shipping Registry celebrates 120 years of service

Shipping Registry celebrates 120 years of service

February 3, 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
  • CMR Daily Buzz
  • Events
  • Election 2021
  • Cayman’s Youth
  • Legal Notices
  • Live Show
  • The Cold Hard Truth
  • Ask The Marl Road
    • Consumer Protection
    • COVID-19
    • What would you do?
  • Breaking News
  • Government
    • Road Closures
  • Rumor Has It
  • Investigative Reports
  • Business
    • Finance
  • Cayman Crime Watch
  • Celebration of Life
  • Community Notices/Events
    • Accidents
    • Police
    • Weather
  • Court Cases
    • Civil
    • Criminal
  • Entertainment
    • Events
    • Music
  • Family
    • Education
    • Fury Friends
  • Lifestyle
    • Food
    • Health
    • Medical Experts
  • News Roundup
  • Opinions
    • Polls
    • Cartoons
  • Politics
    • Parliament
  • Regional News
  • Social Media Happenings
    • Jackass of the Day!
    • Lost & Found
  • World News
  • Cayman Small Business
  • Cayman Wellness
  • Tech News
  • Sports
  • Science
  • Weird & Unusual News
  • Advertorials

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