In the first federal court decision on the status of initial coin offerings (ICOs) in a criminal context, the U.S. District Court for the Eastern District of New York denied a motion to dismiss an indictment, ruling that a reasonable jury could conclude that the relevant ICOs were “investment contracts” and thus “securities.” This article reviews the facts alleged in the indictment; examines what the decision does and does not say; and considers its implications in general, as well as for fund managers that have invested in ICOs or are considering doing so. For more on ICOs, see “Funds and Managers Must Be Wary of State, in Addition to Federal, Regulatory Scrutiny of ICOs
” (May 17, 2018); “HFLR Cryptocurrency Webinar Examines Regulatory Developments, ICOs, Cryptocurrency Sweep, Custody and Other Compliance Issues
” (May 3, 2018); and “SEC Cyber Unit Files Charges Against Allegedly Fraudulent ICO
” (Jan. 11, 2018).
To read the full article
Sorry, we do not recognise the username and password combination you have entered.
Please ensure you have typed your email address correctly and remember that passwords are case sensitive.
You are logged into a maximum of three different browsers/devices.
Please log in with one previously used and go to My Account to manage the browsers/devices you are using.
A reset link has been sent to the email address provided.
Please be aware that the time taken for mail to be delivered is dependent upon your Internet Service Provider. It should normally arrive within 5-15 minutes.
Thank you, we'll contact you about your trial