ICO's in USA

[munsterpoo]

Although I know that residents of USA are restricted from participating in ICO's, I was wondering what exactly would happen if a USA resident does indeed go around it and still put their money into one. Would the SEC take the money, or what kind of consequences are there?

[thejaytiesto]

Although I know that residents of USA are restricted from participating in ICO's, I was wondering what exactly would happen if a USA resident does indeed go around it and still put their money into one. Would the SEC take the money, or what kind of consequences are there?

Well, you can always bypass limitations with VPN or any proxy of sorts*, but if the ICO requires identification to confirm that you aren't using a proxy to bypass a supposed IP block on the website, they will still see that you aren't an US citizen. So the next step would be to use a fake ID... which is ridiculous. Why would you want to get into so much trouble to get in some ICO. Just stay legal. Find any other ICO's that aren't hosted in the USA. I think most will stop happening in the USA because ultimately what the ICO guys want is the entire planet being able to participate in order to get as much money as possible. But with less restrictions comes easier ways for scammers to scam, so do due dilligence and you should be ok.

*Even if you used a VPN, once you want to cash out, you would need to explain where these gains came from, so they would see that you are an US citizen that bypassed a law with an VPN... this could lead to problems. If it's not an huge amount I guess you can get away with it tho.

[CrazyJoker]

Guys, thank for such interesting topic and for full answer. Now I’m really thrilled what is so perspective ICO in USA if you are ready to do any afford to participate.

[raypinch]

You might get into real trouble and it is not worth because it is hard to find really good ICO project that you could trust 100 %
So it might happen that you take double risk:
- ICO scam
- infringement of US Laws.

[nonszaaa]

Maybe I can help u

This group provide
"US citizens to participate in ICO without RISK!!"

For the process

1.If you want to participate in which ICO ,you have to tell us what ICO you want and give us "Your Ethereum address and Your E-mail ( no password)"

2.Then we will create your account with my IDcard(Thailand citizens) in that ICO and fill your Ethereum address

3.So,you don't have to transfer your money to anyone, you can send ETH to ICO with your account

4.We make a deal ( You pay us, then we give you an ID-Password to login in that website, which mean you can wait till ICO start and get ETH address by yourself)

Join https://www.facebook.com/groups/1584766564942258/

[Shogun1011]

It's my understanding that the legal issues do not necessarily relate to the buyers/participants in the ICO, but with the companies offering the ICO.  If you offer a security for sale to the public and allow USA participants, then you are required to follow SEC law.  If you do not register with the SEC, then they can file a lawsuit against you...regardless of where your business is located in the world. 

The exclusion of USA citizens is merely an attempt to protect the company offering the ISO from SEC laws.

Please correct me if I'm wrong, because I'd really like to have proper understanding of this topic.

Thanks!

[imutzz]

Pay another person to complete the KYC proces is can be done to. there always another choice.

[Yaunfitda]

Maybe I can help u

This group provide
"US citizens to participate in ICO without RISK!!"

For the process

1.If you want to participate in which ICO ,you have to tell us what ICO you want and give us "Your Ethereum address and Your E-mail ( no password)"

2.Then we will create your account with my IDcard(Thailand citizens) in that ICO and fill your Ethereum address

3.So,you don't have to transfer your money to anyone, you can send ETH to ICO with your account

4.We make a deal ( You pay us, then we give you an ID-Password to login in that website, which mean you can wait till ICO start and get ETH address by yourself)

Join https://www.facebook.com/groups/1584766564942258/

How can those US citizens be so sure that you won't steal the tokens from them since you are going to created the wallet and you will know the password and the private key? This is one of the scammiest thing I ever heard in this community.

Its really hard to bypass the regulations for US citizens to join and invest on ICO. I'm sure sooner or later they will found out what you did, and you might regret your decisions later. There are a lot of legal implications that will get yourself in trouble. I'm sure that heavy penalties and worst jail time are to be expected.

[xaviervilla]

Although I know that residents of USA are restricted from participating in ICO's, I was wondering what exactly would happen if a USA resident does indeed go around it and still put their money into one. Would the SEC take the money, or what kind of consequences are there?

i really do not know about what are the consequences if a us citizen is found breaking this law.
but what i do understand is that, there really are ways if an american citizen would really want to join icos. but would really not make any sense if the capital and potential gains would be too small. although it may not be detectable, it wouldn't be worth the efforts. and even if the capital, and potential profits may be great, then problems like fund questioning when you wanna cash out will really get you into so much trouble. so why even bother?

i think the most logical thing to do is just stop doing something that you know is not allowed in your country. the potential profits compared to the risks just obviously isn't worth the hassle.

and besides, most of the legitimate ICOs nowadays really do not accept us citizens together with all the other people living on countries in which cryptos are declared to be banned.

people really need to realize that crypto is just another opportunity to earn just like other jobs or investments out there and not something that can guarantee anyone financial success. financial success entirely depends on a person's hard work and resilience. if that's not the case, then there would not be a single successful businessman or investor existing today.

[RodneyKings]

You can hire someone to participate for you. It would be nice if you have a trusted relative which is not a US Citizen and participate on the ICO and probably just pay him after. Just keep all the private keys for yourself. I think you'll have a problem with the KYC and a little problem with converting to fiat money after the ICO although you can join groups that supports person-to-person (p2p) coin exchange so all funds are directed to your bank. Maybe as long as you don't involve a big amount of money in one transaction, I guess everything will be good.

[Reatim]

You can hire someone to participate for you. It would be nice if you have a trusted relative which is not a US Citizen and participate on the ICO and probably just pay him after. Just keep all the private keys for yourself. I think you'll have a problem with the KYC and a little problem with converting to fiat money after the ICO although you can join groups that supports person-to-person (p2p) coin exchange so all funds are directed to your bank. Maybe as long as you don't involve a big amount of money in one transaction, I guess everything will be good.

The problem is how to find someone that you can trust outside of the USA. I'm sure that there are a lot of US citizens that doesn't have much relative living outside. And it involves money. And we all know that money can cost a lot of problems. Even husbands and wives fight it over regardless of the amount.

As for the consequences, no one can say for sure. We all know that US is very strict implementing their laws. I will advise NOT to engage yourself in ICO if you are a US citizen to avoid the hassle in the future, its not worth it.

[housebtc]

Once you are US citizen you are not allowed and you are not allowed into ICO, you need not to invest, if you do, you are on your own, because there are reasons why these developers are preventing US citizen because most of these ICOs are security

[BlackBoxRecords]

Although I know that residents of USA are restricted from participating in ICO's, I was wondering what exactly would happen if a USA resident does indeed go around it and still put their money into one. Would the SEC take the money, or what kind of consequences are there?

IMO that would depend on what precautions has the company taken to avoid it. The buyer himself I think would not suffer any consequence, but the company would have to prove that has taken all reasonable measures to prevent it.

[pearlsome]

I think it's not necessary to break the law. You can then buy these coins on any exchange at the very beginning of sales. It's not necessary to risk for 10% or 20% of bonuses. Just when I see my country on the list of banned. To be honest, I feel terrible. As if I'm second grade.

[Shogun1011]

IMO that would depend on what precautions has the company taken to avoid it. The buyer himself I think would not suffer any consequence, but the company would have to prove that has taken all reasonable measures to prevent it.
[/quote]

I agree with this statement.  I think everyone is getting confused as to where the real risk is.  The buyer is not at risk.  The company offering the tokens for sale is.  The reason why USA residents are not allowed to participate is because the companies offering the tokens for sale do not want to violate any SEC laws.  Therefore, they employ KYC/geo-fencing techniques to limit their liability.  If the company honestly tries it's best to exclude USA buyers, then the SEC will most likely leave them alone even if USA buyers skirt the rules via VPN or false identities etc.

[shield132]

You might get into real trouble and it is not worth because it is hard to find really good ICO project that you could trust 100 %
So it might happen that you take double risk:
- ICO scam
- infringement of US Laws.

Why don't worths? The dact that there are many scam ICO's doesn't means anything, also you can never trust any ICO 100%. But this is a great way for creative and profitable investment.
We can use VPN anytime and everywhere, it's not a problem if we want to bypass something, even personal information (if it's not a bank directly).
Also I agree to pearlsome, just buy coins when they will be released, paying some % more worths for absolute safity.

[1 currency now]

Although I know that residents of USA are restricted from participating in ICO's, I was wondering what exactly would happen if a USA resident does indeed go around it and still put their money into one. Would the SEC take the money, or what kind of consequences are there?

Can you have a VPN and invest in the ICO? I am pretty sure that would work if you live in the United States.

[subG]

Maybe I can help u

This group provide
"US citizens to participate in ICO without RISK!!"

For the process

1.If you want to participate in which ICO ,you have to tell us what ICO you want and give us "Your Ethereum address and Your E-mail ( no password)"

2.Then we will create your account with my IDcard(Thailand citizens) in that ICO and fill your Ethereum address

3.So,you don't have to transfer your money to anyone, you can send ETH to ICO with your account

4.We make a deal ( You pay us, then we give you an ID-Password to login in that website, which mean you can wait till ICO start and get ETH address by yourself)

Join https://www.facebook.com/groups/1584766564942258/

This might work if the ICO is under an Ethereum smart contract and the ICO tokens are transferred immediately after a deposit to the address.  If the tokens are distributed at a later time such as after the ICO ends.  This could be an issue because you can always change the Ethereum address stating that your private keys have been exposed and you don't want the tokens to be sent there and since it's your ID, this will be approved.  

[Bounty_90]

I have a working process to support your ICO verification without ME having access to your tokens and wallets.

[99th]

Although I know that residents of USA are restricted from participating in ICO's, I was wondering what exactly would happen if a USA resident does indeed go around it and still put their money into one. Would the SEC take the money, or what kind of consequences are there?

Not all ICOs are restricted in the USA. As a matter of fact, Refereum ICO is coming up soon and they are marketing more to US citizens than anyone else. It is more difficult for a company to comply with US laws regarding ICOs so many just don't want to go through all the hoops. If an ICO is big enough in terms of scope of project and capital, it will most likely be available for investment even in the USA.