United States:
SEC Charges ICO Promoters With Defrauding Investors
28 November 2017
by
Daniel J. McLoon
,
Mauricio Paez
,
Richard Johnson
,
Jonathon Little
,
Kevin Lyles
,
Todd McClelland
,
Lisa M. Ropple
,
Jeff Rabkin
,
Adam Salter
,
Michiru Takahashi
,
Undine Von Diemar
,
Olivier Haas
,
Jörg Hladjk
and
Anand Varadarajan
Jones Day
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On September 29, the SEC brought its first enforcement action in connection with an
initial coin offering ("ICO"). According to the
complaint, the particular digital tokens in question were allegedly
backed by fictitious assets, and the defendants fraudulently raised
$300,000 from hundreds of investors. The enforcement action
followed guidance from the SEC over the past several months that
"virtual coins or tokens may be securities and subject to the
federal securities laws" and alerting investors to potential
scams involving companies using ICOs in pump-and-dump schemes.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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