The Ontario Securities Commission (OSC) has filed fraud charges against Troy Hogg related to a cryptocurrency token he offered Canadian investors that raised $51 million U.S.
The securities regulator claims that between May 2017 and June 2019, Hogg, an Ontario resident at the time, promoted and sold a cryptocurrency called “Dignity Token” to investors across Canada and around the world.
The regulator alleges that Hogg and his various companies — Cryptobontix, Arbitrade Exchange and Arbitrade — defrauded investors with false claims made in promotional materials, including that gold supported the value of the digital token.
The OSC alleges that Hogg further defrauded investors by spending the money he received from investors on personal items such as real estate.
And, the regulator alleges that Hogg did not file a prospectus for the Dignity Token or obtain the registrations needed to trade cryptocurrencies in Ontario.
The OSC says it was aided in its investigation by the U.S. Securities and Exchange Commission (SEC), which has also charged Hogg with fraud.
