• Thu. May 30th, 2024

Markets Continue to Crack Down in Fraudulent ICO’s



Dec 3, 2019

The initial coins offering market continues to face headwinds as the market and authorities continue to look for solutions. China has been a ripe playground for cryptocurrency fraudsters. Now the country is offering financial rewards for those who exposure ICO fraud. In addition, innovation is attempting to weed out financial fraud. Twitter CEO Jack Dorsey is backing crypto initial coin offering exchange platform, CoinList.


China is Offering Financial Rewards to Exposure Fraudulent ICOs

Chinese authorities are offering financial perks to individual who expose illegal cryptocurrency initial coin offerings. According to reports, China’s intermenstrual office is attempting to further crack down on illegal crowdsourcing for initial coin offerings in the blockchain and cryptocurrency sector.

Despite a ban on initial coin offerings in China in 2017, there are plenty of reports of illicit ICO fundraisers. A report published by Diar in 2018 found that globally, ICO investors lost about $100 million to ICO scams. Shenzhen Puyin Blockchain Group, which is a Chinese concern, was single-handedly responsible for a $60 million theft, according to reports. It raised capital for 3-differnet cryptocurrency coin offerings, none of them developed an actual product that could be used by participants.

(Advertisement)Artificial Intelligence Crypto Trading
CypherMind-HQ.com Artificial Intelligence Crypto Trading System – Get Ahead of the Curve with this sophisticated AI system! Harness the power of advanced algorithms and level up your crypto trading game with CypherMindHQ. Learn more today!

Bitcoin Profit Review

Free to use

  • 85% Claimed win-rate
  • $250 Min Deposit
  • Accepts Credit Card
  Trade Now

All trading carries risk

Securities and Exchange Commission

Securities and Exchange Commission

The US Continues to Crack Down on Scams

The Securities and Exchange Commission and the US Attorney’s Office continue to show that fraudulent cryptocurrency activity will be punished in the United States. A recent case revolved around Maksim Zaslavskiy’s who was charged and convicted of two fraudulent investment schemes. Zaslavsky, a Brooklyn businessman, propelled 2-schemes in 2017, and became an early target of SEC enforcement. Zaslavsky was sentenced to 18 months in federal prison for conspiring to commit securities fraud. According to report, in 2017, during the ICO boom Zaslavskiy sold investors asset-backed cryptocurrency tokens for two companies, but the underlying assets of the tokens did not exist. Instead, Zaslavskiy raised at least $300,000 for investments in real estate that never materialized. The SEC charged him with defrauding investors in September 2017. He pleaded guilty last November.

Platform Could Provide Due Diligence

Coinlist, a platform that provides ICO for crypto currencies, has been backed by Twitter CEO Jack Dorsey. Dorsey, is also the CEO of payment service Square, believe that some of the top-ranked crypto will eventually become the de facto currency of the internet. CoinList performs the necessary due diligence before it lists crypto and blockchain startups looking to run a token sale. The company will then connect them with accredited investors. According to its website, the platform offers support for both private and public cryptocurrency token offerings.



According to the Wall Street Journal (WSJ), Dorsey took part in the latest CoinList funding round which reportedly raised $10 million. CoinList, established in 2017 as a spin-off of AngelList, is an ICO exchange platform that initially received backing from investment firms like Polychain Capital, raising over $9 million in its maiden funding round.


Leave a Reply

Your email address will not be published. Required fields are marked *

Don't Miss Out On CypherMindHQ

#1 Artificial Intelligence Crypto Trading System

Sign Up Now

Try Crypto Engine With a Trusted Broker