OSC Files Allegations of Fraud in Multi-Million Dollar Crypto Bid

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TORONTO — The Ontario Securities Commission says it has filed allegations against Troy Richard James Hogg regarding a crypto token offering that raised US$51 million.

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The statement of allegations states that between May 2017 and June 2019, Hogg, a resident of Ontario, promoted and sold a crypto asset named Dignity token, formerly called Unity Ingot, to investors around the world.

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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 bars supported the value of the tokens.

The CSO alleges that Hogg and his companies further defrauded investors by spending a significant amount of invested funds on things unrelated to crypto security tokens, including the purchase of real estate and payments to companies controlled by Hogg.

The regulator also alleges that Hogg has not filed a prospectus for the token or obtained the necessary registration with the OSC to engage in trading activities.

The OSC says it was aided in its investigation by the U.S. Securities and Exchange Commission, which conducted a parallel investigation and laid charges against Hogg and several U.S. residents.

This report from The Canadian Press was first published on September 30, 2022.