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SEC Issues Subpoenas in Hunt for Fraudulent ICOs
Source: Bloomberg
SEC Issues Subpoenas in Hunt for Fraudulent ICOs
By Matt Robinson
February 28, 2018, 7:03 PM EST
→ Regulator focused on firms it suspects of breaking the law
→ Agency concerned some ICOs seeking funds for fake businesses
Expanding a broad crackdown on fraudulent initial coin offerings, U.S. regulators have sent a number of subpoenas to firms they suspect might be violating securities laws, said a person with direct knowledge of the matter.
The Securities and Exchange Commission has been concerned for months that some ICOs are raising money for businesses that don’t even exist. The agency has issued subpoenas to firms and individuals behind specific offerings that it believes might be breaking the law, said the person who asked not to be named because the investigations aren’t public.
In ICOs, a company sells digital tokens that can be eventually redeemed for goods and services. The market has been red hot, with firms raising about $8.7 billion, according to CoinDesk, which tracks the offerings. The SEC is worried that in many cases, small investors, aren’t adequately researching the risks involved.
SEC spokeswoman Judith Burns didn’t immediately return a phone call seeking comment.
-snip-
By Matt Robinson
February 28, 2018, 7:03 PM EST
→ Regulator focused on firms it suspects of breaking the law
→ Agency concerned some ICOs seeking funds for fake businesses
Expanding a broad crackdown on fraudulent initial coin offerings, U.S. regulators have sent a number of subpoenas to firms they suspect might be violating securities laws, said a person with direct knowledge of the matter.
The Securities and Exchange Commission has been concerned for months that some ICOs are raising money for businesses that don’t even exist. The agency has issued subpoenas to firms and individuals behind specific offerings that it believes might be breaking the law, said the person who asked not to be named because the investigations aren’t public.
In ICOs, a company sells digital tokens that can be eventually redeemed for goods and services. The market has been red hot, with firms raising about $8.7 billion, according to CoinDesk, which tracks the offerings. The SEC is worried that in many cases, small investors, aren’t adequately researching the risks involved.
SEC spokeswoman Judith Burns didn’t immediately return a phone call seeking comment.
-snip-
Read more: https://www.bloomberg.com/news/articles/2018-03-01/sec-is-said-to-issue-subpoenas-in-hunt-for-fraudulent-icos
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