Initial Coin Offering Attorneys Beware, You Could Be Next!

Following the SEC’s recent initial subpoena offerings targeting ICO issuers, many believe the SEC might now turn its sights toward some of the gatekeepers involved in the subject ICOs, including the attorneys. Some attorneys practicing in the ICO space have simply been too aggressive in their approaches, or otherwise negligent in their advice to clients, drawing recent criticism from the SEC and increasing the potential that we will see the SEC take direct action against such attorneys.

While to date the SEC has not hinted at any attornies knowingly committing, or otherwise assisting with, fraudulent activities in connection with any ICO, its clear from SEC Chair Jay Clayton’s statements above the SEC believes that many ICO attorneys were negligent in their advice or otherwise lax in fulfilling their gatekeeper roles.

Whether or not the SEC will elect to take action against any particular ICO attornies remains to be seen and will most likely depend on what the SEC finds as a result of the recent subpoenas and information requests issued to ICO companies as noted above. Whatever happens, it is clear that this issue is not going away anytime soon and attorneys will continue to remain in the SEC’s peripheral, if not direct, sights.

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