THELOGICALINDIAN - The apple of blockchain and cryptocurrencies may arise to be blooming on the alfresco but theres a lot of adumbral being activity on abaft the scenes Last ages the Securities and Exchange Commission or SEC in the US managed to antithesis affairs of a assertive Maksim Zaslavskiy who planned to bamboozle investors through two credible Ponzi schemes bearded as antecedent bread offerings or ICOs
According to the SEC’s official columnist release, the two counterfeit ICOs in catechism are for REcoin, which was accustomed as “the first-ever cryptocurrency backed by absolute estate,” and DRC or Diamond Reserve Club, which was allegedly advance in diamonds. Investors were allegedly told that they could apprehend “sizable returns” from the after operations but the absoluteness was that there was annihilation abetment either of these.
Apart from lying about the abeyant balance that investors could accomplish in the two ICOs, the perpetrators additionally boasted about accepting a “team of lawyers, professionals, brokers, and accountants,” abounding of whom will be active in furthering the approaching of any and all investments. And what’s more, it’s declared that they biased the bulk of money aloft amid the two schemes from investors, area the $2 actor to $4 actor bulk was a artifact and the absolute bulk was alone about $300,000.
Only recently, the SEC’s Office of Broker Education and Advocacy issued an broker alert, which was about the risks of ICOs. You can acquisition the abounding argument of this here.
Andrew Calamari, Director of the SEC’s New York Regional Office, said this in a statement:
“Investors should be alert of companies touting ICOs as a way to accomplish outsized returns. As declared in our complaint, Zaslavskiy absorbed investors with apocryphal promises of abundant allotment from atypical technology.”
As of this time’s writing, the SEC has already acquired an emergency cloister adjustment to benumb the assets of Zaslavskiy and all of his companies. But it’s cryptic at this point how the victims of this allegedly counterfeit arrangement will be compensated for their investments in it so far.
