Category

ICO

Category

Initial Coin Offerings are now mushrooming in Germany as well.  Besides the recent Savedroid ICO, the local Frankfurt news section of the Frankfurter Allgemeine Zeitung recently  mentioned at least three more transactions that are in the process of being launched. Like its many European counterparts, the German regulator BaFin is very skeptical regarding blockchain-based coin (“token”) sales and has issued a number of warnings to consumers. More recently, on 20 February 2018, the BaFin published…

When traders want to purchase crypto using traditional currency, or exchange one cryptocurrency for another, they do so via an exchange.  Coinbase is one of the world’s largest, with over 13 million users.  Over the past few days it has been hit with two class action lawsuits, both in federal district court in California. The first an insider trading case.   The suit claims Coinbase employees unfairly profited from the December listing of bitcoin cash. The…

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…

We have reported in this space about how the SEC has indicated that most ICOs probably qualify as securities under U.S. law. see 1-3 and 1-23.  One of the SEC’s first enforcement actions in this regard was against  Maksim Zaslavskiy for his two initial coin offerings allegedly marketed through his companies REcoin and Diamond Reserve Club.   That was followed by a criminal suit. Yesterday, Zaslavskiy sought to dismiss the criminal case, arguing that the cryptocurrencies…

The U.S. Securities and Exchange Commission today charged a former bitcoin-denominated platform and its operator with operating an unregistered securities exchange and defrauding users of that exchange.  The SEC also charged the operator with making false and misleading statements in connection with an unregistered offering of securities. The SEC alleges that BitFunder and its founder Jon E. Montroll operated BitFunder as an unregistered online securities exchange and defrauded exchange users by misappropriating their bitcoins and…

In an effort to create clarity for market participants, the Swiss Financial Market Supervisory Authority FINMA published guidelines, on Friday, February 16, that set out how it intends to apply financial market legislation in handling inquiries from ICO organizers. The guidelines also define the information FINMA will require to deal with such inquiries and the principles upon which it will base its responses.  Focusing on anti-money laundering and securities regulation, FINMA plans to handle ICO…

We previously reported on the Kentucky court that issued a temporary restraining order against BitConnect.  On Wednesday, that TRO was extended to February 27. Yesterday, a new lawsuit was brought against BitConnect in federal court in Florida.  The judge in this case refused to enter a TRO freezing the defendants’ assets.  Following are the material parts of the decision: Plaintiffs argue that without the TRO, Defendants may “dissipate money generated from Plaintiffs and the Class or…

The U.S. SEC announced today that it had obtained a court order to halt and freeze the assets of what is likely one of the largest initial coin offerings ever. The complaint alleges that AriseBank used social media, a celebrity endorsement, and other wide dissemination tactics to raise what it claims to be $600 million of its $1 billion goal in just two months.  According to the SEC press release, “AriseBank and its principals sought…

We previously reported how, in the Tezos litigation, the court denied a temporary restraining order that sought to enjoin the defendants from selling, transferring, converting, or otherwise disposing of any assets collected or derived from an ICO, holding that plaintiff had failed to show that he is likely to suffer irreparable harm in the absence of injunctive relief.  Today, in connection with the class action against BitConnect, (Paige v Bitconnect, case 3:18-cv-0058-JHM W.D. Ky 1-30-18),…