The SEC profits off fraud by charging fines that are less then the scammers profit
The SEC is not our friend. Rarely they have a case that is in favor of the retail investor. I went down the rabbit whole for their fine to fraud profit ratio and it’s terrible. Logan Paul scammed millions of dollars of profit from Dink Doink and Crypto Zoo as one example.
At the end of the day the SEC fined him and his team combined a total of $400,000, less than 1/6th of the profit he made according to Coffeezillas research.
If he and his team are only being charged about half a million after profiting millions and millions of dollars there is ZERO incentive to not do it again. If anything it encourages him to scam more people because he knows in a court of law he can’t get away with it.
The SEC is literally profiting off fraud but doing small fines with no jail time making sure fraudsters can continue their hustle and the SEC makes more in fines in the end.
They could just fine as much as the profit made by a scammer team and offer jail time and end this all, instead they keep the racket going. The SEC who are supposed to protect retail investors is fake and will never be on our side. Open your eyes.
submitted by /u/wpeironnet