The US Justice Department has launched an investigation into traders who are manipulating bitcoin prices.
The Bloomberg report states that the probe is focused on "spoofing" - a practice where an investor intentionally manipulates the price of an instrument. Eradicating the flood of fake orders from the market is also on the agenda.
With the fall of bitcoin prices, and the volatile nature of the cryptocurrency market, there is a call to crack down on fraudulent activity. For more information, head to this CNBC article.
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Cryptocurrency losses? The attorneys at Sallah Astarita & Cox include experienced former SEC staff attorneys, and securities attorneys with decades of experience in securities manipulation cases. For a confidential review of your investments, call 212-509-6544 or email mja@sallahlaw.com.
Showing posts with label Blockchain. Show all posts
Showing posts with label Blockchain. Show all posts
Friday, May 25, 2018
Tuesday, April 3, 2018
SEC Halts Fraudulent ICO
ICO Investment? SEC Halts Unregistered ICO
New investments bring new frauds, or sometimes just variations on a theme.. This true with cryptocurrency, demonstrated by the SEC's recent charges against two co-founders of a purported financial services start-up with orchestrating a fraudulent initial coin offering (ICO) that raised more than $32 million from thousands of investors last year. Criminal authorities separately charged and arrested both defendants.
The SEC's complaint alleges that Sohrab “Sam” Sharma and Robert Farkas, co-founders of Centra Tech. Inc., masterminded a fraudulent ICO in which Centra offered and sold unregistered investments through a "CTR Token." Sharma and Farkas allegedly claimed that funds raised in the ICO would help build a suite of financial products.
They claimed, for example, to offer a debit card backed by Visa and MasterCard that would allow users to instantly convert hard-to-spend cryptocurrencies into U.S. dollars or other legal tender. In reality, the SEC alleges, Centra had no relationships with Visa or MasterCard. The SEC also alleges that to promote the ICO, Sharma and Farkas created fictional executives with impressive biographies, posted false or misleading marketing materials to Centra’s website, and paid celebrities to tout the ICO on social media.
According to the complaint, Farkas made flight reservations to leave the country, but was arrested before he was able to board his flight. Criminal authorities also arrested Sharma.
"We allege that Centra sold investors on the promise of new digital technologies by using a sophisticated marketing campaign to spin a web of lies about their supposed partnerships with legitimate businesses,” said Stephanie Avakian, Co-Director of the SEC's Division of Enforcement. “As the complaint alleges, these and other claims were simply false."
New investments bring new frauds, or sometimes just variations on a theme.. This true with cryptocurrency, demonstrated by the SEC's recent charges against two co-founders of a purported financial services start-up with orchestrating a fraudulent initial coin offering (ICO) that raised more than $32 million from thousands of investors last year. Criminal authorities separately charged and arrested both defendants.
The SEC's complaint alleges that Sohrab “Sam” Sharma and Robert Farkas, co-founders of Centra Tech. Inc., masterminded a fraudulent ICO in which Centra offered and sold unregistered investments through a "CTR Token." Sharma and Farkas allegedly claimed that funds raised in the ICO would help build a suite of financial products.
They claimed, for example, to offer a debit card backed by Visa and MasterCard that would allow users to instantly convert hard-to-spend cryptocurrencies into U.S. dollars or other legal tender. In reality, the SEC alleges, Centra had no relationships with Visa or MasterCard. The SEC also alleges that to promote the ICO, Sharma and Farkas created fictional executives with impressive biographies, posted false or misleading marketing materials to Centra’s website, and paid celebrities to tout the ICO on social media.
According to the complaint, Farkas made flight reservations to leave the country, but was arrested before he was able to board his flight. Criminal authorities also arrested Sharma.
"We allege that Centra sold investors on the promise of new digital technologies by using a sophisticated marketing campaign to spin a web of lies about their supposed partnerships with legitimate businesses,” said Stephanie Avakian, Co-Director of the SEC's Division of Enforcement. “As the complaint alleges, these and other claims were simply false."
"As we allege, the defendants relied heavily on celebrity endorsements and social media to market their scheme,” said Steve Peikin, Co-Director of the SEC's Division of Enforcement. “Endorsements and glossy marketing materials are no substitute for the SEC’s registration and disclosure requirements as well as diligence by investors.”
The SEC’s complaint, filed in federal court in the Southern District of New York, charges Sharma and Farkas with violating the anti-fraud and registration provisions of the federal securities laws. The complaint seeks permanent injunctions, return of allegedly ill-gotten gains plus interest and penalties, as well as bars against Sharma and Farkas serving as public company officers or directors and from participating in any offering of digital or other securities. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Sharma and Farkas.
Securities Defense Lawyer Blog: SEC Halts Fraudulent Scheme Involving Unregistered Offering.
Contact Mark Astarita, New York Securities Lawyer, if you have any questions or concerns about your stock losses. 212-509-6544
The SEC’s complaint, filed in federal court in the Southern District of New York, charges Sharma and Farkas with violating the anti-fraud and registration provisions of the federal securities laws. The complaint seeks permanent injunctions, return of allegedly ill-gotten gains plus interest and penalties, as well as bars against Sharma and Farkas serving as public company officers or directors and from participating in any offering of digital or other securities. In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced criminal charges against Sharma and Farkas.
Securities Defense Lawyer Blog: SEC Halts Fraudulent Scheme Involving Unregistered Offering.
If you lost money today trading in Amazon stock or any other security, and you know of anyone who knowingly or recklessly made a false public statement about that company or its stock, causing your losses, you should contact a securities lawyer today.— Richard W. Painter (@RWPUSA) April 2, 2018
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