According to DLNews, the U.S. Securities and Exchange Commission stated that a Texas investment manager illegally invested $18.5 million of Muslim clients' funds in cryptocurrency. From August 2021 to August 2022, Khalid Parekh raised funds from the Muslim community through media such as broadcasts and podcasts, promising an annual return of 4%.
However, Parekh invested client funds in two cryptocurrency lending platforms instead of traditional assets. The SEC did not specify the platforms. Parekh agreed to pay a $100,000 fine and to return client funds along with 4% interest during the investigation, and to revoke his investment advisor registration.
The SEC's cryptocurrency lawsuits decreased after the end of the federal fiscal year. Current chairman Gary Gensler will step down on January 20, and the industry is looking forward to Trump appointing a head who supports cryptocurrency.
