The U.S. SEC, in recent months, repeatedly put cryptocurrency companies and their advisers on notice about what officials said were violations of securities rules designed to protect investors. see posts of 1-3; 1-23; 2-6. And SEC chairman Clayton said he had instructed his staff to be on high alert for approaches to ICOs that may be contrary to the spirit of those laws. According to a Wall Street Journal report, those warnings have now been followed by dozens of subpoenas and information requests to technology companies and advisers involved in cryptocurrencies. The article also mentions a soon-to-be published MIT study of the ICO market which estimates that $270 million to $317 million of the money raised by coin offerings has “likely gone to fraud or scams.” It also states that the SEC reported that at least a dozen companies have put their offerings on hold after the agency raised questions.
SEC Investigates Cryptocurrency Companies
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David Zaslowsky
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David Zaslowsky has a degree in computer science and, before going to Yale Law School, was a computer programmer. 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. David has been included in Chambers for his expertise in international arbitration. He is the editor of the firm's blockchain blog.