ICOs Enjoined in Malaysia and North Carolina

January 09

Today, the Securities Commission Malaysia (SC) directed CopyCash Foundation to immediately cease and desist all its proposed activities, including a purported plan to launch an ICO on January 10, 2018 in Malaysia.  This directive covers all activities as described in or incidental to CopyCash Foundation’s white paper related to the ICO, including any roadshows, seminars or promotional events related to the scheme.  The directive was issued because the SC “found that there is a reasonable likelihood that disclosures in CopyCash Foundation’s white paper and representations to potential investors will contravene relevant requirements under securities laws.”   The SC also warned investors more generally “to be cautious of the risks of fraud and exercise due diligence before participating in ICO schemes.”

Last week we reported that Texas had entered a cease and desist order against BitConnect. Today, North Carolina did likewise, because it was offering investments but was not registered as a dealer or salesman of securities in North Carolina and because BitConnect had omitted to disclose material facts when offering the investments in North Carolina.

Email
David Zaslowsky has a degree in computer science and, before going to Yale Law School, was a computer programmer. He is currently the Chairman of the Litigation Department of the firm’s New York office. His practice focuses on international litigation and arbitration. He has been involved in cases in trial and appellate courts across the United States and before arbitral institutions around the world. Many of David’s cases, including some patent cases, have related to technology. Since 2008, David has been included in Chambers for his expertise in international arbitration.

Categories

Location