Bitget App
Trade smarter
Open
HomepageSign up
Bitget>
News>
Alleged Fraudster Dupes Institutional Investors, Veterans and Hundreds More in $275,000,000 Ponzi-Like Scheme: SEC

Alleged Fraudster Dupes Institutional Investors, Veterans and Hundreds More in $275,000,000 Ponzi-Like Scheme: SEC

Daily Hodl2025/08/18 16:00
By: by Conor Devitt
WATER0.00%

A Washington state man is facing decades in prison over his alleged involvement in $275 million fraud scheme.

The U.S. Securities and Exchange Commission ( SEC ) and the United States Attorney for the Southern District of New York kicked off parallel legal actions against Ryan Wear last week.

The SEC alleges Wear operated two related Ponzi-like schemes between September 2016 and February 2024, raising over $275 million from more than 250 investors.

The regulator claims Wear used two corporate entities, Water Station Management LLC and Creative Technologies, Inc., to target retail investors and veterans by selling $165 million worth of “investment contracts” that supposedly purchased water machines that would generate revenues.

However, thousands of the promised water machines didn’t exist or had already been sold to other investors, according to the SEC.

Wear is also accused of running a similar and related scheme, targeting institutional investors to raise $110 million in exchange for Water Station notes purportedly secured by water machines. But like his first scheme, the SEC says most of the water machines were either fictitious or no longer owned by Water Station.

Wear also allegedly misappropriated more than $60 million worth of the funds to make Ponzi-like payments to other investors and fund other companies.

The Department of Justice (DOJ) charged Wear with one count of securities fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison. The SEC seeks injunctive relief, disgorgement of ill-gotten gains and civil penalties against Wear, as well as a director and officer bar.

Generated Image: Midjourney

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Fed Opens Up Direct Payment Pathway for Cryptocurrency Firms

In Brief The Fed introduces a new payment model for cryptocurrency firms. Waller's proposal emphasizes narrow banking for stablecoin issuers. The plan balances regulatory, liquidity, and competitive aspects.

Cointurk2025/10/26 12:18

Trending news

More
1
Nubila announces support for x402 payment protocol, ushering in a new era of AI autonomous payments
2
Fed Opens Up Direct Payment Pathway for Cryptocurrency Firms

Crypto prices

More
Bitcoin
Bitcoin
BTC
$113,539.21
+1.86%
Ethereum
Ethereum
ETH
$4,075.15
+3.63%
Tether USDt
Tether USDt
USDT
$0.9998
-0.03%
XRP
XRP
XRP
$2.64
+1.24%
BNB
BNB
BNB
$1,133.26
+2.20%
Solana
Solana
SOL
$199.5
+3.76%
USDC
USDC
USDC
$0.9998
-0.01%
Dogecoin
Dogecoin
DOGE
$0.2033
+3.38%
TRON
TRON
TRX
$0.3001
+0.66%
Cardano
Cardano
ADA
$0.6767
+3.59%
How to buy BTC
Bitget lists BTC – Buy or sell BTC quickly on Bitget!
Trade now
Become a trader now?A welcome pack worth 6200 USDT for new users!
Sign up now
Trade smarter