• Ian Ippolito

SEC Fires Warning Shot at Bitcoin ICOs (Initial Coin Offerings)

Unregistered investments put on notice that they're breaking the law, and can expect vigorous policing and enforcement

2018-02-01: Cyber currency exchange Bitfenex is accused of artificially propping up the price of bitcoin. It was first subpoenaed by US commodities regulator, and then fired the auditor it had originally hired to exonerate it. "There is a problem here," said Jill Carlson, a former trader at Goldman Sachs consults with a variety of virtual currency companies. "The dissolution of the relationship between monitor and accompany is very rarely a good sign that the company is behaving in accordance with market best practices"." "It could mean that a lot of the rally over December and January might not have been real". said Joey Krug, the co-chief investment officer at Pantera capital which runs several virtual currency hedge funds. (More...) 2018-01-25: Update: SEC chairman, Jay Layton, fired two more "stern" warning shots at attorneys involved with ICOs. Specifically he put on notice attorneys who "claim that ICOs are not securities", and attorneys who "appear to provide the 'it depends' equivocal advice, rather than counseling their clients that the product they are promoting likely is a security". And warned that the SEC will be on "high alert" for this sort of activity, which is "contrary to the spirit of our securities laws and the professional obligations of the U.S. s