A Phoenix man, Mario Sosa, has been ordered to pay $155,300 in restitution and a $20,000 administrative penalty by the Arizona Corporation Commission for fraudulently offering and selling an unregistered cryptocurrency investment.
The Corporation Commission found that Sosa touted investment returns of more than 300 percent when selling the crypto investments, claiming investor funds would earn income through the buying and selling of cryptocurrency or by the purchase of machines that would “mine” various virtual currencies.
However, the Commission found that Sosa failed to disclose the risks associated with cryptocurrency and with a multilevel marketing business.
Also, the Commission found Sosa failed to disclose that earlier investors had not been able to withdraw principal and interest as promised.
According to the Corporation Commission, in settling this matter, Sosa neither confirms nor denies the Commission findings, but agreed to the entry of the consent order.