SEC charges two "initial coin offerings" with fraud
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The U.S. Securities and Exchange Commission has charged two companies and the man operating them for fraud in their respective "initial coin offerings." Maksim Zaslavskiy, who runs real estate-backed REcoin Group Foundation and diamond-backed DRC World (also known as Diamond Reserve Club), made false statements about the companies to investors, according to the commission.
Key quote: "Investors should be wary of companies touting ICOs as a way to generate outsized returns," said Andrew M. Calamari, director of the SEC's New York Regional Office, in a statement. "As alleged in our complaint, Zaslavskiy lured investors with false promises of sizeable returns from novel technology."
Go deeper: Earlier this summer, the SEC issued its first warning about token sales and initial coin offerings.