3 months ago 1 min read

CFO is Charged by SEC with Embezzling Funds to Purchase Cryptocurrency

SEC-cooper-morgenthau-blockfi

According to a press release from the U.S. Securities and Exchange Commission dated January 3, a CFO who embezzled money to invest in cryptocurrencies has been charged with fraud.

Cooper J. Morgenthau, the defendant, was the chief financial officer (CFO) of African Gold Acquisition Corp., a special purpose acquisition (SPAC) firm that orchestrated mergers and acquisitions of other businesses.

Over $5 million was stolen during Morgenthau's full plan between June 2021 and July 2022. Directly from African Gold, he first embezzled $1.2 million, spending the money for personal purposes. Additionally, he traded securities and crypto assets, including "meme stocks," with the money.

In addition, Morgenthau is facing accusations from the Southern District of New York's U.S. Attorney's Office.

Over the past year, the SEC has investigated a number of additional cases involving cryptocurrencies. It reached a settlement with BlockFi for an unregistered product in February 2022. It reached a settlement with Kim Kardashian on her support of an ICO in October.

In parallel charges with the Southern District of New York, the SEC charged Gary Wang and Caroline Ellison, two FTX associates, with fraud in December 2022.

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