Hours Ago, the Securities and Exchange Commission (S.E.C) Brought Charges Against Two Companies for Fraud and Deception.
If you've followed my post from just a couple of days ago, I speak at length and touch on this very concern.
In a press release issued late yesterday, and according to the U.S. securities regulator, the S.E.C. has charged two companies and their founder, businessman Maksim Zaslavskiy, with violating anti-fraud and registration provisions of federal securities laws.
Just a few days ago, I brought this current concern to the marketplace, as it was shown in one of the facts I listed. Though, at that time, the article had a lot of feedback, much of the feedback was among the people within the blockchain chat rooms, many of which disfavored the prior post, and moreover, discredited my outlook on what could very well be lurking ahead.
This article demonstrates, just days afterwards from my post, which can be found by my blog in steemit (blog address is below) the possibilities of such activities as what you read in the enclosed.
Allegedly, Zaslavskiy sold cryptocurrencies backed by assets that did not exist in two token sales, one for a project called Diamond Reserve Club World, and the other for an effort called the REcoin Group Foundation, the SEC said.
Further, evidence specified reveals that the SEC said REcoin's ICO was purportedly meant to raise funds for investing in real estate.
What appears to be the first charges against a company utilizing the initial coin offering (ICO) fundraising model by the Securities and Exchange Commission, according to the regulator, the company claimed it had raised “between $2 million and $4 million” when in fact had only raised $300,000
According to the SEC, DRC World advertised that it would invest in diamonds, and would provide its investors with discounts for products, but the company did not invest in diamonds or have any business operations.
Through a federal emergency court order in Brooklyn, New York, both companies and Zaslavskiy’s assets were frozen!
Overall, the announcement from the SEC is the latest indication that the agency is paying more attention to the Wild West of ICOs.
Furthermore, the S.E.C. regulator indicated it had created two new units focused on policing cybercrimes — including violations related to distributed ledger tech and ICOs — and protecting mom-and-pop investors.
The S.E.C. is now looking for the companies to pay penalties in addition to returning all funds raised.
Please visit and follow the blog, and, if you feel that you'd like to see more, I will discuss areas like this in more detail. See my earlier news about what just happened in Australia just several hours ago. Much of which were also concerns that I felt could happen, as specifiedin prior posts that I have authored.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency. You can also find the news on the S.E.C. website.