Canada's Ontario Securities Commission lays out case against Troy Richard James Hogg

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Click here to see other videos from our team. Try refreshing your browser, or The Ontario Securities Commission laid out its case Friday against Troy Richard James Hogg and affiliated companies at the same time the U.S. Securities and Exchange Commission announced charges against Hogg and several U.S. residents in the United States District Court Southern District of Florida.

The OSC said there was an offering of a criptocurrency token that raised $51 million from investors. The Canadian regulator alleges that between May 2017 and June 2019, Hogg and his companies Cryptobontix Inc. Arbitrade Exchange Inc. and Arbitrade Ltd. promoted and sold a coin called Dignity token formerly Unity Ingot to investors around the world. The allegations haven't been proven.

The OSC said that Hogg and his companies defrauded investors with false and misleading statements in promotional materials. These statements included false claims that gold bullion supported the value of Dignity token. The OSC alleges that Hogg and his companies didn't file a prospectus with respect to the distribution of the Dignity token and did not obtain the necessary registration with the OSC to engage in trading activities, contrary to Ontario securities law. The case serves as a cautionary tale to investors interested in the sector of cryptocurrencies, according to the 10 - page statement of allegations. The OSC claims Hogg and his companies acted on a fraud on unwitting investors and that the regulators moved in 2021 to freeze assets that had been obtained with the proceeds of diverted investor funds. The statement of allegations said that proceeds from the sale of certain properties were put in the custody of the Accountant of the Ontario Superior Court of Justice.