SEC sues ICO: US government agencies take action against token fraud suspects


nnThe United States Securities and Futures Commission for the first time sued the company through ICO financing, the two companies are the founder of Maksim Zaslavskiy, the content is contrary to anti-money laundering regulations. And the SFC said that the information disclosed by the two companies’ financing projects had false content. The SFC will order the company to return the investor funds and will be fined.n
nTranslation: Annie_Xun
The US Securities and Exchange Commission (SEC) first sued the company through ICO financing.n
News reports, the SEC sued the two companies and their founder, Maksim Zaslavskiy, for violating the anti-money laundering and registration requirements of the federal securities laws.n
It is said that the SEC said that Zaslavskiy sells the encrypted currency in the two coinage activities without asset support, one is the Diamond Reserve Club World and the other is the REcoin Group Foundation.n
With regard to the evidence, the SEC says REcoin’s ICO funds are used for real estate investment. But while Zaslavskiy told investors REcoin that “lawyers, experts, brokers and accounting team”, the SEC said he did not hire any investment staff.n
And, although he says corporate finance “between $ 2 million and $ 4 million,” the actual situation is only $ 300,000.n
Similarly, the September 11 issue of the Bitcoin Forum was allegedly Zaslavskiy’s statement that the government “intervened” after REcoin, DRC World received a SEC notice.n
The SECC says DRC World will invest in diamonds and offer discounts to investors, but the company does not invest in diamonds or any business.n
New York’s Brooklyn Federal District Court has urgently ordered the two companies and Zaslavskiy assets to freeze through the court.n
In general, the SEC statement is the institution’s attention to ICO Wild West’s recent signs. This week the agency said it has set up two departments to monitor cybercrime, including crime related to distributed books and ICO, to protect the interests of retail investors.n
The SEC will order the two companies to return all funds and make penalties. And the SEC will ban Zaslavskiy from participating in any future digital securities issue.n
The investigation continues.n

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