US SEC Charges Convict and Associates for $30M Fraudulent ICO

The United States Securities and Exchange Commision has charged a group of criminals, who raised over $30 million through a fraudulent initial coin offering (ICO). Per a Jan. 12 press release, the SEC charged convicted Boaz Manor, his business associate, and two companies, CG Blockchain Inc. and BCT Inc. SEZC, with violating the antifraud and securities registration provisions of the federal securities laws. Manor is a dual citizen of Canada and Israel.  The entities allegedly raised more than $30 million in a fraudulent ICO, conducted with the objective to launch…

SEC: Cash-Strapped Telegram Launched 2018 Token Sale to Pay for Servers

Telegram launched a 2018 token sale because it was “short on cash” to pay for servers, the U.S. Securities and Exchange Commission (SEC) said. The claim, made in the regulator’s latest document dump in its ongoing securities case against Telegram, shows for the first time the core of the SEC’s argument: that the token sale was merely a substitute for equity financing. At the time of the sale, Telegram framed it as financing for a next-generation blockchain that would be faster and more versatile than its predecessors. The documents released…

SEC Charges ICO Operator Who Used Alias After Past Conviction

The U.S. Securities and Exchange Commission charged CG Blockchain Inc., BCT In. SEZC and their operators Boaz Manor and Edith Pardo with fraud, alleging he raised $30 million through an initial coin offering (ICO). The SEC alleged in a press release Friday that Manor hid a past criminal conviction by working under an assumed name, passing himself off as an employee of Pardo’s to raise funds for BCT. As part of this effort, Manor allegedly “darkened his hair [and] grew a beard” out of concerns that his actual identity might…

Telegram’s Legal Battle With the SEC Heats Up Over TON Bank Records

Telegram’s battle with the United States Securities and Exchange Commission became one of the most closely followed legal dramas of the crypto space in 2019. This was not only because it appeared to be the first time the Durov brothers’ relentless expansion faltered but also because the court case could have lasting implications for future fintech projects around the world.  Although an initial court decision seemed to have allowed Telegram to maneuver around the request by the SEC to provide the company’s banking records, that decision has since been reversed.…

Bitwise Withdraws Bitcoin ETF Application With the SEC

Bitwise Asset Management has withdrawn its application with the Securities and Exchange Commission (SEC) for its proposed bitcoin exchange-traded fund (ETF). The firm requested the withdrawal in a filing posted with the SEC on Tuesday. While the news may disappoint those in the investment community keen to see the first ever bitcoin ETF in the U.S., the news is unsurprising. The proposal has already been rejected by the SEC in October, although the regulator said soon after that it was reviewing the rejection. The proposal, filed in conjunction with NYSE…

US SEC Warns Investors That IEOs May Be Breaking Securities Law

The U.S. Securities and Exchange Commission (SEC) sent out a warning today from its Investor Education and Advocacy wing, urging citizens to be wary of initial coin offerings (IEOs). In a Jan. 14 statement on its website, the SEC said: “Be cautious if considering an investment in an IEO.  Claims of new technologies and financial products, such as those associated with digital asset offerings, and claims that IEOs are vetted by trading platforms, can be used improperly to entice investors with the false promise of high returns in a new…

Blockvest’s Defense Based on Falsified Documents, Claims SEC

The United States Securities and Exchange Commission have argued in a Jan. 10 filing that Blockvest founder Reginald Buddy Ringgold III falsified and, in one case, forged signatures in documents critical to the case. The commission had previously charged Blockvest with falsely declaring that its initial coin offering (ICO) was registered with the regulator. A pre-ICO? In Oct. 2018, the SEC halted Blockvest’s ICO in an emergency court order. The project had nevertheless already collected more than $2.5 million in a pre-ICO sale of its BLV token. Though the Southern…

SEC Warns Crypto Investors of Initial Exchange Offerings in New Note

The U.S. Securities and Exchange Commission published a new warning against initial exchange offerings (IEOs) Tuesday. According to the notice, IEOs are similar to initial coin offerings (ICOs), many of which the agency has been investigating as unregistered securities offerings over the past several years. While IEO providers may claim their sales are different from ICOs, they may still violate federal securities laws, the SEC said. As such, the agency warned investors to “be cautious” if they are considering investing in an IEO. “IEOs are being touted as an innovation…

Telegram Hit By New SEC Evidence Showing Token Trading After ICO

The SEC has produced new evidence in its case against Telegram, which shows that the company was engaged in trading Gram tokens several months after its initial coin offering (ICO). Messaging app Telegram has been embroiled in a lawsuit with the US Securities and Exchanges Commission, which alleges that US$1.7 billion raised from the sale of Gram tokens between January and March 2018 should have been registered with the authority because the tokens constitute a security. Telegram has consistently refuted these claims and published a statement last week to address…

Telegram Will Release Bank Records to SEC in Ongoing Gram ICO Case

Telegram will release bank records that the United States Securities Exchange Commission believes will prove misconduct in the latter’s $1.7 billion offering of Gram tokens.  International privacy laws and the new information Per a Jan. 13 filing with the court of the Southern District of New York (SDNY), Telegram will have until Feb. 26 to provide the court with the bank records that the court denied the SEC in an earlier ruling that was based on privacy concerns.  Today’s ruling will allow Telegram to redact the information provided to the…