A Brooklyn federal judge made a decision that could be decisive for the cryptocurrency sector, ruling that SEC rules apply to initial token offerings.
Judge Raymond Dorey made this decision after refusing to dismiss federal charges against fraudster Maxim Zaslavsky, whose lawyers tried to argue that current US laws regarding digital currencies are “ambiguous” and therefore cryptocurrency is not subject to federal securities law. However, Raymond Dorey disagreed and said that a jury would be able to evaluate the alleged cryptocurrency theft under current securities laws.
“Although the term “investment contract” has not been defined by Congress, the question of whether a given financial instrument or transaction is an “investment contract” under the federal securities laws has long been settled.”
Zaslavsky is accused of defrauding investors of more than $300,000. The defendant claimed he was raising funds for two businesses that would allow lenders to buy diamonds or real estate with tokens he called REcoin and Diamond Reserve.
Maxim Zaslavsky, who lives in Brooklyn and whose brother Dmitry is an executive at Morgan Stanley, has pleaded not guilty to securities fraud. If he is convicted, he faces up to 20 years in prison.
According to nypost.com
You May Also Like
Uzbekistan legalizes cryptocurrency
The draft law, which will be developed by the highest government bodies, is promised to be prepared by September of this year. Moreover, the President of the Republic Shavkat Mirziyoyev approved the authorities’ intention to create a competence center for blockchain technologies at the Mirzo Ulugbek Innovation Center.
Queensland wants to attract tourists with the possibility of crypto payments
The government of Queensland, Australia's second largest and third most populous state, will begin supporting local cryptocurrency startups that it believes will boost tourism in the state.
