The Brazen Fraud Case That May Help Determine The Future Of ICOs

Maksim Zaslavskiy’s token sale lured scores of investors by boasting about real estate and diamonds. Now he’s fighting securities fraud charges in one of the first sets of ICO cases pursued in the US. Authorities claim Zaslavskiy scammed investors through two ICOs — REcoin and DRCWorld, that promised profits off diamonds. Participants used both credit cards and cryptocurrencies to invest in Zaslavskiy’s projects–but there’s no evidence that a token or digital asset was ever actually issued to any of those investors or that Zaslavskiy was even running his ICOs and their smart contracts and secure transactions with blockchain technology. He has since become one of the first people to be charged with fraud in connection to an ICO.

The Zaslavskiy case offers a window into how the SEC may approach other perhaps questionable ICOs in the future — and might herald more US prosecutions in 2018.

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