Unikrn ICO faces further SEC action

Unikrn, an initial coin offering, or ICO, from 2017, faces action from the U.S. Securities and Exchange Commision, or SEC.  The SEC has accused the startup of running its ICO without going through the proper legal channels, based on a Sept. 15 statement from the regulating body. The commission claims Unikrn offered an unregistered investment opportunity.  “Unikrn agreed to settle the charges by paying a $6.1 million penalty, substantially all of the company’s assets, to be distributed to investors through a Fair Fund,” the statement said.  Unikrn made headlines back in…

First ICO mandating buyers to ‘use’ tokens is successful, collects $5M

A new way of conducting token sales spearheaded by ConsenSys Codefi achieved its first success, with the planned sale of Skale Network tokens collecting just over $5 million. As Cointelegraph reported in February, the Skale token sale was the first to be launched on the Activate platform developed by ConsenSys. Its purpose is to bootstrap new projects with an involved community that would perform the functions required of it, for example staking their tokens to secure the network. To do so, the platform developed the concept of Proof-of-Use. Upon delivery,…

SEC Charges ICO Operator for Misrepresenting His Platform’s Technology

The U.S. Securities and Exchange Commission, or SEC, publicized legal action against another 2017 Initial Coin Offering, or ICO. Boon.Tech and Rajesh Pavithran, the project’s CEO, face fraud accusations from the commission, as well charges associated with securities registration, an Aug. 13 statement from the SEC detailed.  The statement added: “According to the SEC’s order, from November 2017 to January 2018, Boon.Tech and Pavithran raised approximately $5 million by selling Boon Coins to more than 1,500 investors in the U.S. and worldwide to raise funding to develop and market a platform…

Crypto Class Action Asks to Use Social Media to Wrangle Flighty ICO Issuer

Plaintiffs in a class-action lawsuit against Status and its 2017 initial coin offering of the Status Network Token (SNT) are asking the judge to authorize official document delivery, or serving, via alternative channels like Twitter and emails. In court documents obtained by Cointelegraph and filed on Aug. 3, the judge is presented with a ready-to-sign motion outlining alternative methods for class-action plaintiffs to serve case files to Jarrad Hope and Carl Bennetts, both co-founders of Status.  Social media for sending the law Specifically, the motion would allow the plaintiffs to…

The ICO Collapse Taught Projects How to Avoid Reprisals, MEW Founder Says

The boom of the initial coin offerings defined the blockchain industry in 2017 and the first half of 2018 as capital flowed to finance many new projects and the associated services. Ahead of Ethereum’s five year anniversary, Cointelegraph interviewed Kosala Hemachandra, the founder of MyEtherWallet. As he revealed, the surge in activity in 2017 turned the one-man operation — started 10 days after Ethereum’s launch — into a serious software company.  MyEtherWallet was at the time among the most popular and user-friendly wallets, and it had complete support for ERC-20…

Three Individuals Behind Alleged PlexCoin ICO Scam Charged with Fraud

Three Canadian citizens involved with an alleged initial coin offering scam from crypto project PlexCorps have been charged with fraud over conning investors out of $8 million. According to a July 24 statement from the U.S. Attorney’s Office in the Northern District of Ohio, PlexCorps owners Dominic Lacroix and Sabrina Paradis-Royer as well as former employee Yan Ouellet were indicted on five charges, including conspiracy to commit securities fraud and wire fraud, wire fraud, and conspiracy to commit money laundering. The three were found to be responsible for transferring millions…

ETH Activity in Q2 Similar to That Before 2017 ICO Market Boom

Though some on-chain activity for Ethereum is similar to the conditions before the price rallied to its all-time high in 2018, it failed to demonstrate the same bullish behavior in 2020. According to a July report from Xangle Research on Decentralized Finance (DeFi) in Q2 2020, research analyst Jehn Kim determined that on-chain transaction volume on the Ethereum blockchain increased roughly 62%, around a 52-week high on June 23. Transaction fees also rose approximately 688%.  The analyst noted that these on-chain stats “partially resemble the spike seen during the bull…

‘AML Bitcoin’ Lobbyist Jack Abramoff Pleads Guilty to ICO Fraud

Notorious political lobbyist Jack Abramoff has pleaded guilty to charges of conspiring to defraud investors, conspiring to commit wire fraud, and violations of the Lobbying Disclosure Act relating to the 2018 initial coin offering (ICO) for AML BitCoin. Abramoff pleaded guilty by telephone on July 14, admitting to having defrauded millions from investors through the ICO. The plea marks the first prosecution of a lobbyist for a criminal violation of the Lobbying Disclosure Act. AML BitCoin’s founder Rowland Marcus Andrade is currently fighting criminal charges relating to the crypto offering,…

Third Crypto Co-Founder Behind $25 Million ICO Scam to Plead Guilty

Sohrab Sharma, one of the co-founders of cryptocurrency firm Centra Tech facing charges related to a $25 million initial coin offering scam, is reportedly planning to plead guilty.  According to a July 13 report from Bloomberg, Sharma may avoid a November trial date as his lawyers told a federal judge he would be interested in changing his plea.  The announcement comes after Sharma’s associate Robert Farkas was convicted of conspiring to commit securities and wire fraud on June 16. Farkas faces up to 87 months in prison and a $250,000…

SEC Charges Lobbying Kingpin Jack Abramoff With Fraud For Promotion of 2018 ICO

On June 25, the United States Securities and Exchange Commission charged the issuer of AML Bitcoin — not to be confused with Bitcoin itself — with conducting a fraudulent offering. These charges follow up on a criminal filing in San Francisco from June 22.  AML Bitcoin’s story Per the complaints, Rowland Marcus Andrade and his NAC Foundation raised upwards of $5.6 million in an initial coin offering (ICO) for AML Bitcoin beginning in August 2017 and continuing through 2018, amid the huge ICO boom of that time.  The criminal charges…