Fraud Archives - MasterCompliance

What is an Initial Coin Offering (ICO)? – Part II

Posted on September 6, 2018 by SCM Communications

[Continued from What is an Initial Coin Offering (ICO)? – Part I]

Online Platforms that Facilitate Trading in ICO Tokens are Not Registered Exchanges

There are no ICO platforms currently registered as exchanges. Further, the SEC has stated that it neither regulates these platforms as exchanges nor reviews the digital assets that may be listed or traded on these platforms. Many fraudulent platforms refer to themselves as exchanges to provide a sense of legitimacy and make investors assume they are regulated entities or meet the regulatory requirements and standards of a national securities exchange.

What is an Initial Coin Offering (ICO)? – Part I

Posted on September 6, 2018October 23, 2018 by SCM Communications

Digital assets such as cryptocurrencies, as well as other crypto coins and tokens, may be offered to investors in the form of an Initial Coin Offering (ICO). But what is an ICO? And why are they such a regulatory hot topic in the securities industry currently?

Cryptocurrency and The Securities Industry

Posted on July 26, 2018November 2, 2018 by SCM Communications

Cryptocurrency (also spelled crypto currency) is everyone’s new favorite hot topic. Even if you’ve done no research into the topic, you’ve probably heard of the most (in)famous cryptocurrency: Bitcoin. But what are cryptocurrencies? And how are they affecting the securities industry?

SEC Impersonators

Posted on June 29, 2016July 7, 2017 by SCM Communications

On June 27, 2016, the Securities Exchange Commission (SEC) has issued an alert for investors to be careful with any communications seemingly sent from the SEC. Government impersonators are targeting victims of previous frauds.

These impersonators are sending official-looking documents to investors, often claiming that they can help the investor recover their investment-related losses. But, of course, the investor must pay a fee first. Usually, this fee is disguised as some sort of tax, deposit, or refundable insurance bond that the investor must pay. Read More…