SEC Halts Tomahawkcoins Fraudulent ICO
The SEC has recently stopped another initial coin offering on the basis of fraudulent intent and misleading investors with false information. Additionally, the financial watchdog, Tomahawkcoins were in direct violation of regulations placed by the SEC. As the firm has reported, the company behind Tomahawkcoins and David Laurance have both been issued lifetime bans.
Breaking the Law
The SEC has alleged that the company’s initial coin offering actively attempted to acquire funding from the involved participants by providing misleading information regarding the company’s possessions, stating that is owned several leases related to oil drilling and was utilizing artificial numbers of oil production which also directly opposed the company’s actual analysis of their figures.
At the most important factor of the company’s allegations regarding fraud, the SEC has said that its marketing was in direct violation of the law and was boasting many claims as a means of drawing in more investors to invest and purchase their tokens, which in return portrayed a false notion that investing in the company’s tokens would result in profitable gains for their investments.
The acts of fraud by Laurance and the company also consisted of false statements in regards to concealing a previous conviction in another case in which he was also accused of fraud. The defendants involved in the case made no efforts in denying any of the accusations held against them and instead, agreed to a cease and desist and a $30K penalty.
The financial watchdog has consistently issued warnings and precautions against investing in the ICO due to the fact that the company had already planned on initiating it with no regards to following the laws regarding securities. The agency is concerned in that investors are not properly informed about the associated threats and risk they may possibly be exposed to.
The SEC has also acted on its regulations and 12 other companies have paused their ICOs following the warnings released by the watchdog. Additionally, the SEC has frozen many assets belonging to companies involved in crypto, shut down ICOs and trading within firms that have been involved in crypto-block trading operations.
Further on, the SEC also denied another proposal for a BTC Exchange-traded fund presented by the Winklevoss twins.