BLOCKCHAIN LAW GROUP

Where Technology Meets Law
SEC and CFTC join forces to combat crypto fraud
Today, the SEC Co-Enforcement Directors Stephanie Avakian and Steven Peikin and CFTC Enforcement Director James McDonald issued a joint statement addressed to the public about the agencies’ determination to enforce the U.S. law against crypto fraudsters. «When market participants engage in fraud under the guise of offering digital instruments – whether characterized as virtual currencies, coins, tokens, or the like – the SEC and the CFTC will look beyond form, examine the substance of the activity and prosecute violations of the federal securities and commodities laws. The Divisions of Enforcement for the SEC and CFTC will continue to address violations and bring actions to stop and prevent fraud in the offer and sale of digital instruments.»

This statement came after the SEC filed separate claims against Maksim Zaslavsky (REcoin Group Foundation and DRC World) and Dominix Lacroix (PlexCoin) for violation of the anti-fraud provisions of the U.S. securities law. There have been no fraud cases in the crypto industry initiated by the CFTC yet. Both federal agencies are authorized by law to bring charges for fraud against the violators.

We expect to see more ICO investigations and fraud cases filed in the future by the SEC for securities fraud with soon to follow the CFTC enforcement actions against the commodities related fraud.



Summarized by Katrina Arden
Attorney and founder of Blockchain Law Group
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