Press Release
SEC Exposes Two Initial Coin Offerings Purportedly Backed by Real Estate and Diamonds

FOR IMMEDIATE RELEASE
2017-185

Washington D.C., Sept. 29, 2017?

The Securities and Exchange Commission today charged a businessman and two companies with defrauding investors in a pair of so-called initial coin offerings (ICOs) purportedly backed by investments in real estate and diamonds.

The SEC alleges that Maksim Zaslavskiy and his companies have been selling unregistered securities, and the digital tokens or coins being peddled don't really exist. According to the SEC's complaint, investors in REcoin Group Foundation and DRC World (also known as Diamond Reserve Club) have been told they can expect sizeable returns from the companies' operations when neither has any real operations.

Zaslavskiy allegedly touted REcoin as "The First Ever Cryptocurrency Backed by Real Estate."  Alleged misstatements to REcoin investors included that the company had a "team of lawyers, professionals, brokers, and accountants" that would invest REcoin's ICO proceeds into real estate when in fact none had been hired or even consulted. Zaslavskiy and REcoin allegedly misrepresented they had raised between $2 million and $4 million from investors when the actual amount is approximately $300,000.

According to the SEC's complaint, Zaslavskiy carried his scheme over to Diamond Reserve Club, which purportedly invests in diamonds and obtains discounts with product retailers for individuals who purchase "memberships" in the company. Despite their representations to investors, the SEC alleges that Zaslavskiy and Diamond have not purchased any diamonds nor engaged in any business operations. Yet they allegedly continue to solicit investors and raise funds as though they have.

The SEC obtained an emergency court order to freeze the assets of Zaslavskiy and his companies.

The SEC's Office of Investor Education and Advocacy recently issued an investor alert warning about the risks of ICOs.

"Investors should be wary of companies touting ICOs as a way to generate outsized returns," said Andrew M. Calamari, Director of the SEC?s New York Regional Office. "As alleged in our complaint, Zaslavskiy lured investors with false promises of sizeable returns from novel technology."

The SEC's complaint, filed in federal district court in Brooklyn, N.Y., charges Zaslavskiy, REcoin, and Diamond with violations of the anti-fraud and registration provisions of the federal securities laws. The complaint seeks permanent injunctions and disgorgement plus interest and penalties. For Zaslavskiy, the SEC also seeks an officer-and-director bar and a bar from participating in any offering of digital securities.

The SEC's investigation, which is continuing, has been conducted by Jorge Tenreiro, Pamela Sawhney and Valerie A. Szczepanik. The case is being supervised by Lara S. Mehraban. The SEC encourages victims of the alleged fraud to contact Ms. Szczepanik at (212) 336-1100.

The Securities and Exchange Commission today has charged both a diamond and a real estate initial coin offering scheme with defrauding investors.

REcoin, which promoted itself as the first cryptocurrency-backed real estate company and DRC World, a diamond company, are owned by businessman Maksim Zaslavskiy. In a statement, the SEC accuses Zaslavskiy of selling unregistered securities and coins that don’t exist to unsuspecting investors under these companies.

Zaslavskiy allegedly told these investors they could expect “sizeable returns” from each operation, all the while misstating how their money would be invested and misrepresenting how much had already been invested, according to the SEC.

The U.S. government has since obtained an emergency court order to freeze Zaslavskiy’s and his companies’ assets.

Though these appear to be the first initial coin offerings, or ICO’s, to come under fire for fraud, they certainly won’t be the last.

As New York Times columnist Kevin Roose so aptly described the nature of ICO’s, “Imagine that a friend is building a casino and asks you to invest. In exchange, you get chips that can be used at the casino’s tables once it’s finished. Now imagine that the value of the chips isn’t fixed, and will instead fluctuate depending on the popularity of the casino, the number of other gamblers and the regulatory environment for casinos. Oh, and instead of a friend, imagine it’s a stranger on the internet who might be using a fake name, who might not actually know how to build a casino, and whom you probably can’t sue for fraud if he steals your money and uses it to buy a Porsche instead. That’s an I.C.O.”

Obviously, the SEC can still prosecute for fraudulence. The government agency has also been worried about ICO’s, recently warning the public by issuing an investor alert in July, telling potential investors to be wary of unsolicited offers and unbelievable claims such as high returns.

“Investors should be wary of companies touting ICOs as a way to generate outsized returns,” SEC spokesperson Andrew M. Calamari followed up in the statement out today. “As alleged in our complaint, Zaslavskiy lured investors with false promises of sizeable returns from novel technology.”

The diamonds are forever, especially stored in secure locations in the United States and fully insured for their full value. After all, this way they are truly not susceptible to any government manipulations.

Hi fans and devs.
Since i have noticed lately quite a few real estate projects I have decided to prepare a discussion about the comparison of different projects on this field.
Feel free to participate in discussion, since you know best all details about your project.
https://bitcointalk.org/index.php?topic=2146910.msg21480585#msg21480585
Thank you         

I have read this through from page 20 to the end and have noticed that quite a few questions about the project are not answered.
I wonder why devs don't give the effort to answer them?

Please follow the link below for more information

Stage #1 - 10 000 USD  from 14 Aug until 31 Aug 2017
 
1. Campaign on Facebook - 25% 2500 REC
2. Campaign on Twitter - 25% 2500 REC
3. Campaign in Reddit - 25% 2500 REC
4. Campaign in Bitcointalk ? 25% 2500 REC

Stage #2 - 20 000 USD  from 01 Sep until 20 Sep 2017
 
1. Campaign on Facebook - 25% 5000 REC
2. Campaign on Twitter - 25% 5000 REC
3. Campaign in Reddit - 25% 5000 REC
4. Campaign in Bitcointalk ? 25% 5000 REC

Stage #3 - 20 000 USD  from 21 Sep until 09 Oct 2017

1. Campaign on Facebook - 25% 5000 REC
2. Campaign on Twitter - 25% 5000 REC
3. Campaign in Reddit - 25% 5000 REC   
4. Campaign in Bitcointalk ? 25% 5000 REC




By participating in REcoin Social Media Bounty Campaign, you agree to its rules, undertake to fulfill them and confirm that you are 18+ years old.
To participate, you must fill out the registration /forms/Ay9PMAdb1PGwMd6d2]form.
 
Payments will be made in REcoin tokens, by crediting them to the member's personal account after the end of the ICO.

The list of participants is being updated every week. To receive the bounty, each person must participate till the end of the ICO.

You must be an active user of social networks with quality records on the page.
Multiple accounts are not allowed!

Rules for Facebook:

1.   Have at least 150 friends
2.   Make account privacy settings open
3.   Share the posts regularly. Don?t miss more than 3 days of participation
4.   Like & share ?101REcoin? posts at least 5 times per week.

Rules for Twitter:

1.   Have at least 150 Followers
2.   Make account privacy settings open
3.   Retweet the tweets regularly. Don?t miss more than 3 days of participation
4.   Like & Retweet ?101REcoin? tweets at least 5 times per week.
5.   Post tweets about REcoin project using hashtags #tokensale #ethereum #blockchain #eth #token #realestate at least 3 times per week

Rules for BitcoinTalk:

1. A positive level of trust in your account.
2. Write at least 8 posts a week.
3. At least 3 post should be in the main REcoin ICO topic.
4. Accounts have to be at least in a Jr.Member rank.
 
Rules for Reddit:

1. Write at least 8 posts a week in such subreddits like:
- /r/CryptoCurrency/
- /r/ethereum/
- /r/icocrypto/
- /r/Crypto_General/
2. At least 3 posts should be in the REcoin subreddit.
3. Account must be a minimum of 20 comment karma and 20 days account age.

All participants must follow and subscribe:

https://www.facebook.com/101RECoin/
https://www.reddit.com/r/REcoin/
https://twitter.com/101REcoin

A total of 999x10^9 coins will be emitted through the mining process over the course of 50 years.
Funds emitted during the mining process are proportionally distributed as follows:
1) 83% to the 101REcoin Open Trust to be put toward further real estate investment
2) 15% to REcoin miners
3) 2% to charitable organizations

Respectful Mr CryptoPR!
We officially declare that your account couldn' be banned in our FB group as REcoin doesn't have official group.

Your activity is definitely strange and suspicious as your account was created just couple weeks ago and 90% of all your comments are dedicated only to our topic.