The Securities and Exchange Commission (SEC) has obtained an emergency asset freeze against Jonathan and Tanner Adam, along with their associated entities, GCZ Global LLC and Triten Financial Group LLC. The brothers are accused of orchestrating a $60 million Ponzi scheme that defrauded more than 80 investors across the United States.
According to the SEC’s complaint, the Adams brothers misappropriated investor funds to finance their luxurious lifestyles while making Ponzi-like payments to sustain the scheme. The fraudulent activity allegedly took place between January 2023 and June 2024. Jonathan Adam, 42, lives in Angleton, Texas, and his brother Tanner, 38, lives in Miami.
The SEC claims that the Adams lured investors with promises of up to 13.5% monthly returns, falsely asserting that Jonathan Adam had developed a “bot” to capitalize on arbitrage opportunities within the crypto market. Investors were told their money would be pooled into a lending fund, managed through smart contracts, to finance “flash loans” for these trades. The brothers assured investors that their funds were secure unless a global market collapse occurred.
However, the SEC alleges that the so-called lending pool never existed. Instead, the Adams used investor money to pay returns to earlier investors and to fund personal expenses. Notably, Tanner Adam is accused of using these funds to cover payments on a $30 million condominium in Miami, while Jonathan Adam allegedly spent $480,000 on luxury vehicles.
The complaint further reveals that Jonathan Adam misrepresented his background to gain investor trust, omitting that he had previously been convicted of securities fraud.
