The US SEC has been granted a default judgment in the $45 million Coindeal fraud case.

Golden Finance reported that the US SEC announced this week that the US District Court for the Eastern District of Michigan has issued a default judgment against Garry Davidson and Linda Knott, who are suspected of being involved in a $45 million Coindeal fraud case. Davidson and Knott are accused of falsely promising to obtain huge returns by selling Coindeal, a blockchain technology, to wealthy buyers, thereby deceiving investors. The fraud began in January 2019 and continued until mid-2022, during which they misled investors about the value of Coindeal and misappropriated funds for personal use. The court ruled that Davidson and Knott violated the registration and anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. They are permanently banned from future violations, prohibited from holding senior positions or directorships, and ordered to pay substantial restitution and civil fines.