According to a landmark judgment in the United States, the judge ruled that securities laws of the country may cover an ICO. If a review is done for this latest judgment on ICO, it appears that the government got a legal victory pertaining to its effort of regulating the cybercurrency offerings similar to the stocks.
Raymond Dearie, the District Judge in Brooklyn New York said on September 13 that the U.S. government may proceed with the case accusing that an ICO is a security as far as the federal criminal law is concerned. Incidentally, a whopping sum of approximately 18.7 billion USD has been collected so far in 2018 by the ICOs.
The estimated figure is the outcome of the data analyzed and compiled by Coinschedule.com. Jay Clayton, the Chairman for Securities & Exchange Commission has stated that there should be proper regulation on the fundraising procedure.
The Landmark Ruling On ICOs
The review of the definition of ICO was done in a case lodged against Maksim Zaslavskiy, a fraudulent promoter of some Initial Coin Offerings. Prosecutors want to charge him with fraudulent activities related to cheating investors of over 300,000 USD from REcoin, a scam ICO. Meanwhile, Clayton opines that the market has threats from fraudsters due to the immense popularity of Blockchains and cryptocurrencies, according to Bloomberg.
Earlier in 2017, CCN had reported that the SEC had alleged that Zaslavskiy along with his two companies defrauded the investors through multiple ICO scams. Investors were given the impression that REcoin was backed by diamond assets and real estate, which were not true at all.
The judge reviewed the case and ruled that he leaves it to the jury to ascertain if the ICO was a security or not. However, Judge Dearie did not agree to dismiss the allegations brought against Zaslavskiy. The latter’s lawyer had previously pled for dismissing the charges against their client on grounds that those ICOs were not securities but currencies.
The post Latest Judgment Review: ICO Covered In US Law appeared first on OWLT Market.
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