Fraudster Used FAKE NAMES to Steal Millions in Crypto Schemes!

SEC v. Ivars Auzins — U.S. Securities and Exchange Commission Litigation Release No. 26279, dated March 28, 2025.

The SEC charged Ivars Auzins with defrauding investors through two fraudulent crypto asset offerings, Denaro and Innovamine. Auzins used fake identities and entities to misappropriate investor funds. He consented to a final judgment permanently enjoining him from violating securities laws and prohibiting him from participating in crypto asset offerings for ten years.

In Plain English

Imagine someone promising to help you invest in a new digital coin (like a special internet money) or a special online service that claims to grow your money. This person, Ivars Auzins, did just that with two different schemes. He pretended to be someone he wasn't, using fake names and fake companies. He took almost all the money people gave him for these investments and didn't use it as promised. Now, a court has ordered him to stop doing this and banned him from similar activities for a decade.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Launch Denaro ICO Between January and March 2018, Auzins launched the Denaro initial coin offering (ICO). He presented this as an opportunity for U.S. and foreign investors to buy digital assets.
2. Create Fake Identities To carry out the Denaro scheme, Auzins allegedly used fictitious names, such as 'Ron Ramsey' and 'Daniel Gaines,' and fabricated legal entities to mask his true identity and operations.
3. Misappropriate Denaro Funds Auzins misappropriated nearly all of the investor funds raised through the Denaro ICO, failing to use them for the purported purposes of the offering.
4. Establish Innovamine Platform From April to July 2019, Auzins operated Innovamine, an online entity that he claimed offered a cloud mining and digital asset trading platform.
5. Use Fraudulent Profiles Similar to the Denaro scheme, Auzins allegedly employed fraudulent profiles and fictitious legal entities to promote and operate the Innovamine platform.
6. Misappropriate Innovamine Funds Auzins again misappropriated nearly all of the investor funds raised through the Innovamine platform, diverting them for his own use rather than for the promised services.
7. Face Parallel Charges In December 2021, Auzins was charged by the SEC and faced parallel criminal charges from the U.S. Attorney’s Office for the Eastern District of New York.
8. Plead Guilty and Sentenced Auzins pled guilty to the criminal charges and was sentenced to time served, totaling 31 months, in the criminal case.
9. Consent to Final Judgment On February 7, 2025, Auzins consented to the entry of a final judgment in the SEC's civil case, agreeing to the terms without admitting or denying the allegations.

The Enforcement Action

SEC obtained a final judgment on consent against Latvian national Ivars Auzins for defrauding hundreds of retail investors in connection with the Denaro ICO and Innovamine online platform. Auzins was charged in December 2021. The final judgment permanently enjoins Auzins from violating antifraud and registration provisions of the Securities Act and Exchange Act. The judgment orders disgorgement of $412,201.15, deemed satisfied by forfeiture in a parallel criminal proceeding where Auzins pled guilty and was sentenced to 31 months. Auzins is barred from acting as an officer or director of a public company for ten years and prohibited from participating in any crypto asset offering as a security for ten years.

Named in this action: Ivars Auzins.

Original SEC litigation release ↗ · Browse all cases