The United States Securities and Exchange Commission (SEC) has suspended the activity of another alleged crypto-currency-related scam that would have stolen millions of dollars from its investors.

According to the SEC’s June 19 announcement, the authority was granted a temporary restraining order and asset freeze against two Pennsylvania resident brothers allegedly running three cryptomoney scam schemes. According to the SEC, Sean Hvizdzak and Shane Hvizdzak lied about the performance of their funds in Bitcoin Rejoin crypto currencies by forging financial statements, and instead moved the investors‘ funds into their bank accounts, as well as into various crypto currency exchanges.

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As ruled by the United States District Court for the Western District of Pennsylvania, the Hvizdzaks, Hvizdzak Capital Management, LLC, High Street Capital, LLC and High Street Capital Partners, LLC, will be suspended from trading temporarily for violating federal securities fraud laws.

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The ruling comes immediately after the SEC filed an emergency action with the court on June 16. According to the SEC report, the Hvizdzak brothers have been involved in fraudulent activities related to crypto currencies from at least July 2019 to May 2020, after establishing a fund to invest „in a wide variety of investments with crypto currencies.“ In March 2019, the Hvizdzaks allegedly raised $31 million in one of the accounts under their administration.

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The same report says that, the Hvizdzaks moved about $26 million from the fund’s account into their personal bank accounts, as well as into popular crypto currency exchanges such as: Binance, Gemini an exchange founded by the Winklevoss twins, and Bittrex. In the paper, the SEC emphasized that stolen funds are difficult to trace once they are converted into cryptosystems such as Bitcoin (BTC).

The securities regulator wrote:

„Once the trust currency, in this case US dollars, is exchanged for a digital asset, Defendants can transfer the digital assets anywhere in the world without a bank or government forms.“

According to the SEC, the court will consider freezing further assets and issuing a preliminary injunction at a hearing set for June 30, 2020.

As a major global financial regulator, the SEC is actively fighting fraudulent activity in the crypto-currency industry. In March 2020, the authority froze the assets of an alleged crypto-currency scam backed by a former state senator.