SEC Enforcement Action Targets ICO Operator
Check this out: the first of what promises to be many securities enforcement actions in the cryptocurrency space.
On Friday afternoon the SEC announced fraud charges against two companies and their principal, Maksim Zaslavskiy, in connection with the marketing and sale of allegedly fraudulent Initial Coin Offerings ("ICOs").
U.S. securities regulators published a memorandum in July warning the industry that many ICOs qualify, in the SEC's eyes, as unregistered sales of securities.
ICO offerors and participants large and small, sophisticated and unsophisticated -- like the defendant in this first case -- ought to be following these developments.