TORONTO – The Ontario Securities Commission says it has filed charges against Troy Richard James Hogg related to a crypto-token offering that raised $51 million.
The statement of allegations says that between May 2017 and June 2019, Hogg, a resident of Ontario, promoted and sold a crypto asset called Dignity token, formerly known as Unity Ingot, to investors around the world.
The regulator alleges that Hogg and his companies – Cryptobontix Inc., Arbitrade Exchange Inc. and Arbitrade Ltd. – defrauded investors with false and misleading statements in promotional materials, including that gold bullion backed the value of the tokens.
The OSC alleges that Hogg and his companies further defrauded investors by spending a significant amount of funds invested in things unrelated to crypto-security tokens, such as buying real estate and making payments to companies controlled by Hogg.
The regulator also alleges that Hogg failed to file a prospectus for the token or obtain the necessary registration with the OSC to engage in commercial activities.
The OSC says it was assisted in its investigation by the US Securities and Exchange Commission, which conducted a parallel investigation and has brought charges against Hogg and several US residents.
This report by The Canadian Press was first published on September 30, 2022.