What’s Going On?
The SEC bares its teeth in shot across the bows of dodgy ICOs.
Why Does It Matter?
By accusing two token founders of fraud and conspiracy to commit fraud following revelations that they lied to investors about partnerships, the SEC is making it plain that it will no longer tolerate scams.
According to Bloomberg, a criminal complaint was submitted to a US federal court in Manhattan stating that the co-founders of Centra Tech. Inc didn’t comply with federal securities laws because they lied about partnerships with Visa, MasterCard and The Bancorp.
Why Them, Now?
The case is particularly high-profile because Centra used boxer Floyd Mayweather to promote the token offering to his 8 million Twitter followers in a post. “The defendants relied heavily on celebrity endorsements and social media to market their scheme” The Hill quoted the co-director of the SEC’s enforcement division as saying in a statement.