Uh oh - Cryptopocalypse? Brooklyn Judge Rules ICO's Are Securities

in steemit •  3 months ago

Just happened to see this. Not sure what it means for the future of cryptos but definitely worth looking into the ramifications of this ruling.

As per Futurism:

A Brooklyn judge has refused to dismiss a criminal case that would treat an initial coin offering (ICO) as a type of security, Bloomberg reports.
The takeaway: it will empower federal prosecutors who want to crack down on scammers who use digital currencies to circumvent financial law.

The case: The Security and Exchange Commission (SEC) is suing Maksim Zaslavskiy, who founded two cryptocurrencies. Prosecutors say Zaslavskiy misled investors by presenting himself as an experienced banker, real estate investor, and philanthropist. A Fast Company investigation found that he claimed cryptocurrencies he created were backed up by real estate holdings and diamonds — but prosecutors say they were smoke-and-mirrors scams that defrauded investors for hundreds of thousands of dollars.

To see the rest of the article, click HERE

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It was bound to happen eventually

How will it affect SMTs is the question we should be asking . Will the steem market become and unlicensed exchange ?