Thinking about Cryptocurrencies?
Did you think you found a loophole to raise capital through an ICO? The SEC says no.
Like an IPO, firms are creating new cryptocurrencies and selling it to investors to raise capital as an ICO. Some firms have been using ICO’s to circumvent the onerous regulations and fees associated with traditional public offerings.
Although very popular – not all offerings are real; the SEC claims them to be illegally unregistered securities offerings and are taking their position to court. In a significant victory for the SEC’s position this week, a judge rejected efforts to dismiss securities fraud charges brought against a Brooklyn businessman related to ICO’s.
Want to understand more about the latest scam? Earlier this year the SEC created a fake site for HoweyCoin as an educational tool to help investors recognize frauds. Click here for more information.