"We allege that these defendants stole billions of dollars from retail investors around the world by exploiting their interest in digital assets," said Lara Shalov Mehraban, associate regional director of SEC's New York regional office. "We will aggressively pursue and hold accountable those who engage in misconduct in the digital asset space."

The SEC's complaint charges the defendants with violating the antifraud and registration provisions of the federal securities laws. The complaint seeks injunctive relief, disgorgement plus interest, and civil penalties. The SEC previously reached settlements with two of the five individuals it charged in a related action for promoting the BitConnect offering. In a parallel action, the Department of Justice  announced that Glenn Arcaro, a top promoter of BitConnect, has pleaded guilty to criminal charges.