The SEC’s Battle Against Crypto Continues. This Time It’s Alleged Scammers
- LOCI Coin is under examination for selling unregistered securities worth $7.6 million through an initial coin offering (ICO).
- LOCI’s CEO, John Wise has been issued with a cease and desist order to destroy and delist the tokens from every exchange.
- The company settled up with the SEC, agreeing to pay a fine worth the initial ICO amount as a penalty.
- Bitconnect was the first major Ponzi scheme to be deregistered by U.S. authorities.
The cryptocurrency space is a “wild west” as crypto assets yet reside in a legal grey area. Anonymity, brought forth by blockchain, has created a precedent in which token prices can rise and fall sharply as financial gatekeepers shy away from enforcing strict regulations. As tighter measures have been set into motion, the total value of the crypto market has been heavily affected. The SEC’s place in the crypto market is advantageous…