Crypto Asset Management LP (CAM), a California hedge fund manager, is the subject of the US Securities and Exchange Commission’s first enforcement action.
CAM is said to be culpable of running an unregistered investment venture and of falsely advertising itself as the first US regulated cryptocurrency asset fund.
CAM handles cryptocurrency investment portfolios for the affluent and also for institutional investors. In a period of more than four months, the hedge fund and Timothy Enneking, its founder and sole principal, has accumulated a total of $3.6 million from 44 investors, all the while proclaiming itself to be SEC regulated.
Enneking has stated that none of their investors were impacted by the SEC’s decision. The hedge fund has presented to repurchase to investors.
Enneking and CAM has agreed to pay the fine amounting to $200,000. Both the hedge fund and its founder have also complied with the cease-and-desist order against it.