RATE Group | Judge rules cryptocurrency ICO scam case falls under securities law
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Judge rules cryptocurrency ICO scam case falls under securities law

12 Sep Judge rules cryptocurrency ICO scam case falls under securities law

Posted at 07:32h in Cryptocurrency News by

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A New York judge ruled today that the US Securities and Exchange Commission can proceed with its legal case against the organizer of two initial coin offerings (ICOs), who currently stands accused of defrauding investors.

The decision, the first of its kind, grants the SEC the go-ahead to pursue criminal cases against ICO organizers under current US securities laws.

Also: These are the warning signs of a fraudulent ICO

ICOs became extremely popular in 2017, after the launch of the Ethereum blockchain platform a few years prior.

Following a simple analogy, initial coin offerings are similar to initial public offerings, but with cryptocurrencies instead of real (fiat) money.

Companies or other loosely formed ventures issue tokens to investors, tokens that they sell and track on the Ethereum blockchain. This is similar to how real-world companies issue stock to investors, stock which they trade and track on the stock…

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