SEC Wins $5.74 Million Judgments Against Three BitConnect Promoters
SEC judgments require BitConnect promoters Michael Noble, Craig Grant and Trevon Brown to pay $5.74 million over unregistered lending securities sales.
Summary
SEC Litigation Release No. 26660, published September 30, 2026, reports three Southern District of New York judgments totaling $5,742,182.35 against BitConnect promoters. Michael Noble’s July 17, 2026 final judgment requires $731,281 disgorgement, $293,703.36 prejudgment interest and a $50,000 civil penalty, totaling $1,074,984.36. Craig Grant’s August 7, 2026 final default judgment orders $1,748,147 disgorgement, $702,105.84 interest and a $230,480 penalty, totaling $2,680,732.84. Trevon Brown’s September 9, 2026 consent judgment requires $1,728,563 disgorgement, $182,902.15 interest and a $75,000 penalty, totaling $1,986,465.15.
The SEC’s May 28, 2021 complaint, SEC v. Brown et al., No. 1:21-cv-04791, alleged Noble, Grant and Brown marketed and sold unregistered BitConnect “lending program” securities from approximately June 2017 to January 2018 without registering as broker dealers. Grant is permanently barred from violating Securities Act Section 5 and Exchange Act Section 15(a), specified marketing or sales programs and digital asset securities offerings. Brown is enjoined from violating Securities Act Sections 5(a) and 5(c) and Exchange Act Section 15(a). Noble received equivalent conduct restrictions and Section 5 and Section 15(a) injunctions through an August 12, 2021 partial consent judgment. Senior trial counsel Todd D. Brody conducts the litigation under Cyber and Emerging Technologies Unit Chief Laura D’Allaird and Jack Kaufman.
Positives
- $5,742,182.35 in combined disgorgement, interest and penalties was ordered through three final judgments.
- $4,207,991 in combined disgorgement targets proceeds linked to promotion of BitConnect’s lending program.
- Permanent injunctions restrict Grant and Noble from specified marketing programs and future digital asset securities offerings.
- Final judgments entered between July 17 and September 9, 2026, advancing litigation filed in May 2021.
Risks & concerns
- The SEC alleged unregistered BitConnect securities sales and unregistered broker dealer activity from approximately June 2017 to January 2018.
- Craig Grant’s $2,680,732.84 obligation arose through a final default judgment rather than a consent judgment.
- Prejudgment interest totaled $1,178,711.35, substantially increasing the promoters’ financial liabilities.
- The judgments include permanent federal securities law injunctions, with additional offering and sales restrictions imposed on Grant and Noble.
