Difference between revisions of "Cryptocurrency fraud"

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=='''SEC Seeks to Enjoin $15M Fraudulent Initial Coin Offering'''==
=='''SEC Seeks to Enjoin $15M Fraudulent Initial Coin Offering'''==


On December 1, 2017, the SEC filled an emergency action to stop a fraudulent and unregistered coin offering known as PlexCoin. The defendants raised approximately $15 million from investors through false and misleading statements, including, according to the SEC’s complaint, “promises that if all 400 million PlexCoin tokens for sale were sold, the early investors would reap outlandish rewards of 1,354% in 29 days or less (the supposed period of the PlexCoin ICO), and by comparing the supposed returns to those in other ICOs or investments in cryptocurrencies—returns as high as 88,000%”
On December 1, 2017, the SEC filled an [https://www.sec.gov/litigation/complaints/2017/comp-pr2017-219.pdf emergency action] to stop a fraudulent and unregistered coin offering known as PlexCoin. The defendants raised approximately $15 million from investors through false and misleading statements, including, according to the SEC’s complaint, “promises that if all 400 million PlexCoin tokens for sale were sold, the early investors would reap outlandish rewards of 1,354% in 29 days or less (the supposed period of the PlexCoin ICO), and by comparing the supposed returns to those in other ICOs or investments in cryptocurrencies—returns as high as 88,000%”


The SEC is seeking an injunction barring PlexCorps and individual defendants from participating in any offerings of unregistered securities, an asset freeze, civil penalties, and disgorgement of ill-gotten gains. Click here to see the SEC complaint.
The SEC is seeking an injunction barring PlexCorps and individual defendants from participating in any offerings of unregistered securities, an asset freeze, civil penalties, and disgorgement of ill-gotten gains. Click [https://www.sec.gov/litigation/complaints/2017/comp-pr2017-219.pdf here] to see the SEC complaint.


On April 2, 2018, the SEC brought a complaint alleging that the co-founders of Centra Tech. Inc. offered and sold unregistered investments through a “CTR Token.” The company falsely promised investors that the offering would be used to create the “Centra Line” of products — a financial services system that would enable holders of various hard-to-spend “cryptocurrencies” to convert their assets easily into legal tender. In addition, the co-founders represented to investors that the “Centra Token Rewards Program” entitled investors to “rewards” of 0.8% of the total revenue that Centra earned from Centra Card transactions. The offering raised $32 million.
On April 2, 2018, the SEC brought a [https://www.sec.gov/litigation/complaints/2018/comp-pr2018-53.pdf complaint] alleging that the co-founders of Centra Tech. Inc. offered and sold unregistered investments through a “CTR Token.” The company falsely promised investors that the offering would be used to create the “Centra Line” of products — a financial services system that would enable holders of various hard-to-spend “cryptocurrencies” to convert their assets easily into legal tender. In addition, the co-founders represented to investors that the “Centra Token Rewards Program” entitled investors to “rewards” of 0.8% of the total revenue that Centra earned from Centra Card transactions. The offering raised $32 million.


=='''SEC Halts ICO'''==
=='''SEC Halts ICO'''==