11.8 C
New York
Saturday, November 28, 2020
Home Trends Cryptocurrency fraudster faces 5 years in prison for selling fake ICOs

Cryptocurrency fraudster faces 5 years in prison for selling fake ICOs

 

A Brooklyn-based businessman turned cryptocurrency huckster faces up to five years in prison for orchestrating two monstrously phony initial coin offerings (ICOs) last year.

Maksim Zaslavskiy, a former institutional developer and “businessman,” plead guilty to two counts of conspiracy to commit securities fraud before a New York district court yesterday, reports FinanceFeeds.

Zaslavskiy confessed to defrauding “around” 1,000 investors with a cryptocurrency called RECoin, marketed as the first ever cryptocurrency to be backed by real estate. He also sold special Diamond tokens that were supposed to be hedged by physical diamonds.

Not only were both claims fake, but so were the tokens. There was never any blockchain technology powering either of them.

“The calculated lies of Zaslavskiy and others led unsuspecting investors who thought they were purchasing cryptocurrency securities to buy worthless certificates,” said US district attorney Richard Donague.

The court documents also detail how Zaslavskiy declared RECoin to have a “team of lawyers, professionals, brokers and accountants,” and that 2.8 million tokens had been sold, when really only 1,000 investors had been tricked into purchasing the bullshit certificates.

FBI Assistant Director-in-Charge, William Sweeney, commented that Zaslavskiy and his goons dressed “old-fashioned criminal schemes in the language of new currency” in order to swindle cash from unsuspecting, newbie investors.

The court also used this opportunity to issue a warning to the greater industry: simply labeling something a “cryptocurrency” does not magically transform it into a currency, thereby skirting the SEC’s strict laws related to securities.

Zaslavskiy now faces up to five years in prison. Further, the SEC also filing related civil charges against Zaslavskiy, which are to be settled following the court’s criminal sentencing.

Source: The Next Web

To Read Our Daily News Updates, Please Visit Inventiva Or Subscribe Our Newsletter & Push.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisment -

Most Popular

India’s GDP Shrinks by 7.5 %, The Worst In Decades!

According to the data released on Friday by the Union Ministry of Statistics and Program Implementation (Mospi), India’s GDP (gross domestic product) shrank by...

Q2 GDP shows surprising resilience: Is it good enough to last?

The surprise resilience shown by the manufacturing sector that restricted GDP contraction to only 7.5 per cent in September quarter could be a result...

Petrol price crosses Rs 82-mark, diesel above Rs 72 a litre

Petrol price on Saturday crossed Rs 82-mark in Delhi and diesel surpassed Rs 72 a litre after eighth increase in rates in past nine...

PM reviews vaccine work in Ahmedabad, Hyderabad and Pune

Prime Minister Narendra Modi on Saturday visited Ahmedabad, Hyderabad and Pune to review coronavirus vaccine development work there. The Prime Minister's Office (PMO) said the...

Recent Comments

%d bloggers like this: