📈Crypto Recovery? $EOS Moons! Vitalik On HBO | Bithumb ICO | #1 New 🔥Crypto | $IOTA $MAN $OMG $UUU
Centra ICO Faces Class Action Lawsuit, Accused of Violating US Securities Laws
Centra, an initial coin offering (ICO) noted for having been promoted by Floyd Mayweather, is now facing a class action lawsuit. The ICO is accused of violating securities laws by misrepresenting the cryptocurrency as comprising a utility-based token.
Trading Bitcoin for an Altcoin Won’t Shield You From the IRS Anymore
The Suit Has Been Filed on Behalf of Plaintiff Jacob Zowie Thomas Resel
states state that “Between approximately July 30, 2017, and approximately October 5, 2017,” Centra violated the Securities Act through “rais[ing] over $30 million in digital cryptocurrencies by offering and selling unregistered securities.” The complaint adds that “There are conflicting reports as to the actual amount raised, some reports indicate the amount raised may have been closer to $50 million.”
The suit states that “The purported primary purpose of the Centra ICO was to raise capital to operate the ‘world’s first Multi-Blockchain Debit Card with a Smart and Insured Wallet’… In other words, the product to be offered was a debit card that would function on the Visa and Mastercard networks and allow instant transactions using digital currencies. Further, the Centra ICO claimed to be intended to raise capital to create an online marketplace called ‘cBay’ that would be similar to Amazon and eBay.”
The complaint describes the defendants as having “made a feeble attempt to portray the Centra ICO as a sale of ‘utility-based tokens’ that were ‘not securities, shares or investments’.” The suit alleges that the Centra ICO comprised “a clear offer and sale of securities” due to the defendants “hav[ing] explicitly referr[ing] to the ICO participants as ‘investors’,” in addition to “tout[ing]… that the CTR Tokens received in exchange for their investments would be worth more than the… [crypto]currencies invested.”
Centra Enlisted Celebrities to Leverage Their Social Media Presence in Order to Promote the ICO
The Centra crowdsale received endorsements from “brand ambassador”
, and DJ Khaled. The celebrity endorsements suggest that Centra hired the services of Crypto Media Group – a company considered to have sparked the recent wave of famed entertainers promoting ICOs.
that the endorsements may have distracted potential investors from critically evaluating the merits of the company behind the ICO – stating that such “lent a patina of credibility to a project… with more than a few problems, including a chief executive who does not appear to have been a true person.” The United States Securities and Exchanges Commission (SEC) has sought to crack down on the practice of ICOs enlisting
to promote token sales, warning that advertising unregistered securities could result in legal repercussions.
The suit against Centra has been lodged during a period of increased scrutiny surrounding the operations of ICOs. The record-breaking Tezos crowdsale has become the recipient of several class-action
in recent weeks, following the company’s failure to develop and distribute the cryptocurrency. Earlier this month, the SEC
that Munchee Inc. had refunded investors following the forceful shut down of the ICO by the SEC. The action taken against Munchee comprised the first instance in which the SEC sought to act against an ICO for which there are no outstanding allegations of fraud from customers.
Do you think that the ICO bubble is starting to pop? Or that a new industry is maturing as a consequence of regulatory scrutiny? Share your thoughts in the comments section below!
Samuel Haig is a journalist and entrepreneur who has been completely obsessed with bitcoin and cryptocurrency since 2012. Samuel lives in Tasmania, Australia, where he attended the University of Tasmania and majored in Political Science, Media & Communications. Samuel has written about the dialectics of decentralization Centra Ico Refund , Media & Communications. Samuel has written about the dialectics of decentralization, and is also a musician and kangaroo riding enthusiast.
New CNBC Documentary Explores the Cultism of Bitcoin
New CNBC Documentary Explores the Cultism of Bitcoin.
It’s not even aired, and CNBC’s new Bitcoin documentary has already ired the community it’s depicting. From the 90-second trailer alone, Bitcoin purists have found plenty to pick on…
PR: SPIN Protocol – a New Blockchain Solution for Fast Growing...
PR: The World Blockchain Forum Returns to London Bigger and Better...
PR: Brock Pierce and Company Will Bring Together Exchanges, and Regulators...
News.Bitcoin.com is Hiring Editorial Staff – In Tokyo, Stockholm and Your Town.
Centra Ico Refund
How is that not an attack on him ? Premine is not a nice word in crypto. It's not like people are...
Sounds like a positive news but will that have a significant effect on the price rise of bitcoin?
Indian Exchange Resumes Fiat Deposits and Withdrawals Using New Method
It's all nice and dandy, except that the btc it at less then 40% of it value when it was stollen or...
oh poor BAT, it's such a while goose chase that the gov put them on! the escrows are trustworthy...
The Daily: Chinese Crackdown Continues, ICO Head Faces 15 Years in Prison
While your at it buy a half dozen 80% lowers just to wave the red,white and blue!
EXCLUSIVE: 3D Gun Proponent Cody Wilson Defiant, Offers Firearm Blueprints for Sale
celebrates 2.5 million wallets created in less than a year. Get yours on
right to your device for easy and secure access to your bitcoins. Perfect for beginners, the Bitcoin.com Wallet makes using and holding bitcoins easy. No logins required.
Roger Ver, CEO of bitcoin.com discusses interesting points from the week’s news flow. If you enjoy Roger’s Bitcoin vlogs and want more videos, hit the thumbs up, subscribe and leave a comment on our
We also deliver bite-sized news to your favourite messaging app; join our
0 Reviews:
Post Your Review