Difference between revisions of "Cryptocurrency fraud"

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


On December 11, 2017, the SEC halted an unregistered ICO for a blockchain-based food review service. In a consent cease-and-desist order halting the ICO, the SEC identified key aspects of the offering that required registration:
On December 11, 2017, the SEC halted an unregistered ICO for a blockchain-based food review service. In a consent [https://www.sec.gov/litigation/admin/2017/33-10445.pdf cease-and-desist order halting the ICO], the SEC identified key aspects of the offering that required registration:
 
* “MUN token purchasers had a reasonable expectation of profits from their investment in the Munchee enterprise. The proceeds of the MUN token offering were intended to be used by Munchee to build an “ecosystem” that would create demand for MUN tokens and make MUN tokens more valuable.”
“MUN token purchasers had a reasonable expectation of profits from their investment in the Munchee enterprise. The proceeds of the MUN token offering were intended to be used by Munchee to build an “ecosystem” that would create demand for MUN tokens and make MUN tokens more valuable.”
* “Investors’ profits were to be derived from the significant entrepreneurial and managerial efforts of others – specifically Munchee and its agents – who were to revise the Munchee App, create the “ecosystem” that would increase the value of MUN (through both an increased demand for MUN tokens by users and Munchee’s specific efforts to cause appreciation in value, such as by burning MUN tokens), and support secondary markets.”
“Investors’ profits were to be derived from the significant entrepreneurial and managerial efforts of others – specifically Munchee and its agents – who were to revise the Munchee App, create the “ecosystem” that would increase the value of MUN (through both an increased demand for MUN tokens by users and Munchee’s specific efforts to cause appreciation in value, such as by burning MUN tokens), and support secondary markets.”
* The offeror (Munchee) made public statements or endorsed other people’s public statements that touted the opportunity to profit. For example, Munchee created a public posting on Facebook, linked to a third-party YouTube video, and wrote “199% GAINS on MUN token at ICO price! Sign up for PRE-SALE NOW!”
The offeror (Munchee) made public statements or endorsed other people’s public statements that touted the opportunity to profit. For example, Munchee created a public posting on Facebook, linked to a third-party YouTube video, and wrote “199% GAINS on MUN token at ICO price! Sign up for PRE-SALE NOW!”


=='''SEC Warns About Initial Coin Offerings'''==
=='''SEC Warns About Initial Coin Offerings'''==