Reflections on Recent SEC Enforcement Actions against ICOs

  In 2017, Initial Coin Offerings (ICOs) raised approximately $4 billion of capital worldwide. ICOs are a digital asset fundraising mechanism where issuers sell to investors digital tokens or coins that are supported by the blockchain technology, and investors make the payment using Bitcoin or other cryptocurrencies or fiat currency. ICOs, by their nature, are exposed to high risks, including fraud and cyberattack, making investor protection an eminent concern. In 2018, the Securities and Exchange Continue Reading →

STLR Link Roundup – February 25, 2018

SEC Charges Former Bitcoin-Denominated Exchange and Operator with Fraud On February 21, 2018, the Securities and Exchange Commission (“SEC”) filed security fraud charges against BitFunder, a former bitcoin-denominated online platform, and its founder Jon E. Montroll, in violation of Section 10 (b) of the Exchange Act and Rule 10b-5. They were charged with operating an unregistered securities exchange, defrauding the users by misappropriating their funds, and failing to disclose the cyberattack resulting in bitcoins theft. Continue Reading →