U.S. Judge Says Initial Coin Offering Covered by Securities Law

Must Read

Bank Of England Claims That Cryptocurrencies Could Make Banking Systems Redundant And Useless

Bank of England, Deputy general, Jon Cunliffe stated that the rise of cryptocurrencies and stablecoins could result in...

Africa’s First Bitcoin ATM Card Launched By Patricia in Niegeria

First Bitcoin ATM Card unveiled in Africa by Patricia to streamline the interaction between Bitcoin and its users. ...

FCoin Makes Attempt To Rise From The Dead, But They’re Struggling

Cryptocurrency exchange, FCoin After reporting insolvency on February 27, is now making scraping attempts to get back into...
5d85c99dd353c-bpfull
Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain. Join the official channel of thecoinrepublic, For the latest news updates: https://t.me/thecoinrepublic

The ruling came in a case against a fraudulent ICO promoter Maksim Zaslavskiy, whom prosecutors are looking to bring up on fraud charges for defrauding investors of more than $300,000 from a scam ICO called REcoin.

A U.S. District Judge in Brooklyn has delivered a landmark judgment with far-reaching implications for the initial coin offering (ICO) market. Judge Raymond Dearie of the U.S. District Court Eastern District of New York today ruled that U.S. securities laws cover ICO token sales.

REcoin is the biggest scam it was reported that the SEC charged Zaslavskiy and two of his companies with defrauding investors through a number of ICO scams including REcoin. REcoin was marketed to investors as being backed by real estate and diamond assets which in actual fact did not exist.

In a pioneering ruling, Judge Dearie refused to dismiss the case against Zaslavskiy, whose lawyers earlier pled for dismissal on the basis that the ICOs in question were currencies and not securities, placing them outside the jurisdiction of the SEC Act.

An excerpt from today’s hearing file reads:

“He [Zaslavskiy] argues that the securities laws are unconstitutionality vague as applied. The Government, meanwhile, asserts that the investments made in REcoin and Diamond were “investment contracts,” and thus “securities,” […] and that these laws are not unconstitutionally vague.”

Judge Dearie’s ruling on this matter was that an ICO is indeed a security for the purposes of federal criminal law, which is what prosecutors have argued since the last year.

Hot News

Bank Of England Claims That Cryptocurrencies Could Make Banking Systems Redundant And Useless

Bank of England, Deputy general, Jon Cunliffe stated that the rise of cryptocurrencies and stablecoins could result in the banking system running dry...

Africa’s First Bitcoin ATM Card Launched By Patricia in Niegeria

First Bitcoin ATM Card unveiled in Africa by Patricia to streamline the interaction between Bitcoin and its users. This proves a new platform...

FCoin Makes Attempt To Rise From The Dead, But They’re Struggling

Cryptocurrency exchange, FCoin After reporting insolvency on February 27, is now making scraping attempts to get back into the game. FCoin reported a...

Gilded Partners With TrustToken To Bring Payments On Stablecoins Backed By 5 Popular Fiats

Blockchain-based accounting solution start-up, Gilded has now partnered with financial infrastructure provider, TrustToken. This partnership hopes to be highly valuable and beneficial for...

Where will Bitcoin Head Post Bitcoin Halving 2020, Detailed Analysis

Bitcoin Halving 2020 is just around the corner and every enthusiast and market watcher are on their feet to witness the Halving. The...

Ripple Plans to Launch Third Party Cryptos on it’s Network – Ripple CTO

Ripple CTO, David Schwartz said Third-party cryptocurrencies can soon be launched on the networks of Ripple, said the company’s CTO. David Schwartz, was...

Africa’s First Bitcoin ATM Card Launched By Patricia in Niegeria

First Bitcoin ATM Card unveiled in Africa by Patricia to streamline the interaction between Bitcoin and its users. This proves a new platform...

FCoin Makes Attempt To Rise From The Dead, But They’re Struggling

Cryptocurrency exchange, FCoin After reporting insolvency on February 27, is now making scraping attempts to get back into the game. FCoin reported a...

Gilded Partners With TrustToken To Bring Payments On Stablecoins Backed By 5 Popular Fiats

Blockchain-based accounting solution start-up, Gilded has now partnered with financial infrastructure provider, TrustToken. This partnership hopes to be highly valuable and beneficial for...

Where will Bitcoin Head Post Bitcoin Halving 2020, Detailed Analysis

Bitcoin Halving 2020 is just around the corner and every enthusiast and market watcher are on their feet to witness the Halving. The...

RELATED NEWS

Bank Of England Claims That Cryptocurrencies Could Make Banking...

Bank of England, Deputy general, Jon Cunliffe stated that the rise of cryptocurrencies...

Africa’s First Bitcoin ATM Card Launched By Patricia in...

First Bitcoin ATM Card unveiled in Africa by Patricia to streamline the interaction...

FCoin Makes Attempt To Rise From The Dead, But...

Cryptocurrency exchange, FCoin After reporting insolvency on February 27, is now making scraping...