Meanwhile, the anti-virus mogul is still imprisoned in Spain.
An initial coin offering, or ICO, is a controversial fundraising method for launching blockchain and cryptocurrency networks that involves the sale and distribution of a new crypto asset in exchange for other tokens, commonly Bitcoin (BTC) and Ether (ETH).
During the “ICO mania” of 2017 to 2018, projects collectively raised billions of dollars in capital, largely through nonaccredited investors.
This funding method has since lost most of its legitimacy, both inside and outside the industry. Many ICOs were clearly frauds or, at best, operating in regulatory gray areas. Over the past few years, regulatory agencies such as the United States Securities and Exchange Commission,or SEC, have brought legal action to past and present ICOs, slowly creating legal precedent and guidelines for future ventures.
While the ICO is now a precarious fundraising method for projects and investors alike, it did showcase a powerful use case of blockchain in permissionless fundraising at incredible scale. Over time, the launch methods of cryptocurrency networks will become more sophisticated, safe and, perhaps, regulatorily sound.
A co-founder of the fraudulent 2017 ICO Centra Tech has been sentenced to eight years in prison for his role in the scheme.16877
NFTs are taking over from where DeFi left off, and data suggests asset tokenization will dominate 2021.16708
The Senate held its first hearing on Gary Gensler's nomination to chair the SEC today.8105
Litecoin creator Charlie Lee continues to criticize the NFT industry, seeing the hallmarks of a mania similar to 2017 and even 2013.10791
A U.S. federal judge ruled to dismiss a case against crypto firm Bancor, citing lack of personal jurisdiction and the plaintiff’s failure to prove losses.6356
What started with the unexpected closure of an investment platform may have ramifications for U.S. DeFi projects say critics.11620
A cunning trader exploited Balancer’s LBP contracts to front-run HydraDX’s token offering for $50,000 before it officially launched.8932
The SEC has charged three individuals for defrauding investors out of millions through the Steven Seagal-backed Bitcoiin2Gen ICO.7592
Gensler will likely be replacing Jay Clayton, who famously slowed down the ICO market during his tenure at the SEC. Will Gensler issue new clarity?9163
The celebrity was commissioned to record a promotional video for cryptocurrency in which she forecast new all-time price highs for Bitcoin and Ether.7186
The defunct firm is not the first to run aground due to failure to abide by U.S. securities laws.5280
The crypto industry is ending 2020 on a high note, while major social media platforms face a phalanx of lawmakers and lawsuits.5729
The Tron Foundation has filed a motion to dismiss a lawsuit from plaintiffs alleging securities violations with its $70 million 2017 ICO.9149
Robert Farkas will face the lightest felony sentence possible for his role in Centra Tech's 2017 ICO.42131