SEC v. Tanmaya Kabra, et al. (2019)

Settled

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In August 2019 the SEC obtained an asset freeze against Tanmaya Kabra and LaunchByte.io, alleging he took money for supposed startup investments and spent it on a boat and on repaying earlier investors. In January 2022 the SEC announced final consent judgments with injunctions and $567,793 in disgorgement and interest, deemed satisfied by a criminal restitution order. Kabra was sentenced to 21 months in prison in a parallel case.

The record

What was ordered

Civil penalty

—

Disgorgement

$568k

Prejudgment interest

—

Total relief

$568k

Alleged gain

—

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The SEC announced the order on August 8, 2019 (LR-24556) in a case filed August 5. Investors were promised double-digit returns within months at no risk; the investments allegedly did not exist. A preliminary injunction hearing was set for August 15, 2019.

The record originally named the defendants as "Tanmaya Kabra et al.". The Ponzi tag is removed because the release describes a fabricated startup investment fraud, with payments to earlier investors one use of the money.

Outcome. The SEC's January 2022 release says Kabra and LaunchByte consented to final judgments enjoining them from the antifraud provisions charged and ordering disgorgement and prejudgment interest of $567,793, treated as satisfied by the restitution order in Kabra's criminal case. In that case, the release says, Kabra pleaded guilty to four counts of wire fraud and on 15 September 2021 received 21 months in prison, a year of supervised release, $1,842,106 in restitution and a $15,000 fine. The date used is the release date because the date the judgments were entered was not stated. No civil penalty is reported. The judgments were by consent, so the original allegations were not tested at a civil trial.

Timeline

1. 2019-08-08 Litigation release published
2. 2021-09-15 Kabra sentenced in the parallel criminal case to 21 months in prison
3. 2022-01-06 SEC announces final consent judgments against Kabra and LaunchByte.io

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

• SEC litigation release
• SEC litigation release 25301 (final judgments)

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Same matter

The library links these 2 records because they appear to concern one matter: the same lead defendant, an overlapping technique tag and close filing dates, or a shared court docket or a release that cites the other. Records are listed by date filed.

This grouping is the library's, made by matching names, techniques, dates and citations when the site is built. It is not the regulator's or a court's determination that the records are one case, and it errs towards missing a link rather than making a false one.

Record added September 10, 2026. submit a correction.