US Announces 1st Bitcoin Securities Fraud Case

[JakeThePanda]

This forum will eventually be a who's who of who's going to prison.


http://news.yahoo.com/feds-announce-1st-bitcoin-securities-165424396.html

[gweedo]

Not really most of us here know how to follow the law and not get greedy

[JakeThePanda]

This forum will eventually be a who's who of who's going to prison.


http://news.yahoo.com/feds-announce-1st-bitcoin-securities-165424396.html

Yep, but they still can take your money with ICO's there are loop holes so be cautions

An ICO is a securities offering, it doesn't matter how you want to word it.  For example,  one such project is claiming to be able to make future profit from fees by buying the token.  This immediately fits the definition of a security.  The advertising of potential profit makes it a security offering.

[galdur]

Fortunately the wheels of justice move very quickly

"""Bharara said Shavers caused about half of 100 investors to lose all or part of their bitcoin investment from at least September 2011 through September 2012 as he promised them up to 7 percent weekly interest and assured them they could withdraw their investment at any time if they turned over bitcoins."""

[gweedo]

I lost some good money from Pirate, I was young and stupid

[JakeThePanda]

This forum will eventually be a who's who of who's going to prison.


http://news.yahoo.com/feds-announce-1st-bitcoin-securities-165424396.html

Yep, but they still can take your money with ICO's there are loop holes so be cautions

An ICO is a securities offering, it doesn't matter how you want to word it.  For example,  one such project is claiming to be able to make future profit from fees by buying the token.  This immediately fits the definition of a security.  The advertising of potential profit makes it a security offering.

You should tell this to bittrex who gave all the hosted BTC to the ScamerDev when he was exposed.

I'm pretty sure Bittrex is going to have plenty of legal issues when this all goes down.  An exchange that facilitates funding and enables the trading of unregistered, illegal, fraudulent securities is a problem.

[cloudboy]

This forum will eventually be a who's who of who's going to prison.


http://news.yahoo.com/feds-announce-1st-bitcoin-securities-165424396.html

Yep, but they still can take your money with ICO's there are loop holes so be cautions

An ICO is a securities offering, it doesn't matter how you want to word it.  For example,  one such project is claiming to be able to make future profit from fees by buying the token.  This immediately fits the definition of a security.  The advertising of potential profit makes it a security offering.

You should tell this to bittrex who gave all the hosted BTC to the ScamerDev when he was exposed.

I'm pretty sure Bittrex is going to have plenty of legal issues when this all goes down.  An exchange that facilitates funding and enables the trading of unregistered, illegal, fraudulent securities is a problem.

And it's based in the United States.

[billotronic]

I lost some good money from Pirate, I was young and stupid

"Well, I can't take pity on men of his kind
Even though he now takes it in the behind"

[Dr. Coin]

Oh wow fraud is illegal!?!? (said sarcastically) This has little to do with Bitcoin law themselves as much as some dude creating a ponzi scheme. I am glad the government sees the value in Bitcoins and is working WITH it rather than outright banning them and being ignorant. Bitcoin is a great financial market that deserves to be government noticed. Now is the difficult part to any new industry, even when stocks first started, but eventually it will be taken care of and the fraudsters will be put in their place.

[JakeThePanda]

Oh wow fraud is illegal!?!? (said sarcastically) This has little to do with Bitcoin law themselves as much as some dude creating a ponzi scheme.

Its not just about creating ponzi schemes, read the title of the article.  The feds are starting to consider these offerings as securities and that spells trouble for all these ICOs, ITOs and exchanges.

[Dr. Coin]

Oh wow fraud is illegal!?!? (said sarcastically) This has little to do with Bitcoin law themselves as much as some dude creating a ponzi scheme.

Its not just about creating ponzi schemes, read the title of the article.  The feds are starting to consider these offerings as securities and that spells trouble for all these ICOs, ITOs and exchanges.

Yeah, this is obvious for anyone who has financial/legal knowledge. We all knew this would come, that's why the coin creators started changing their name from "IPO" to "ICO" and now "ITO"

[JakeThePanda]

Yeah, this is obvious for anyone who has financial/legal knowledge. We all knew this would come, that's why the coin creators started changing their name from "IPO" to "ICO" and now "ITO"

Unfortunately for them, it doesn't matter what they call it.

[Honeypot]

This was a glaring issue regarding securities for a long, long time.

Professionals and serious devs would have considered this ages ago.

[cloudboy]

This was a glaring issue regarding securities for a long, long time.

Professionals and serious devs would have considered this ages ago.

Unless they aren't US based.

[JakeThePanda]

This was a glaring issue regarding securities for a long, long time.

Professionals and serious devs would have considered this ages ago.

Unless they aren't US based.

Don't be so sure that just because they aren't US based they are in the clear.  Lots of countries have securities laws and are perfectly willing to cooperate with the US government if they violated any US laws.

[Dr. Coin]

This was a glaring issue regarding securities for a long, long time.

Professionals and serious devs would have considered this ages ago.

Unless they aren't US based.

Don't be so sure that just because they aren't US based they are in the clear.  Lots of countries have securities laws and are perfectly willing to cooperate with the US government if they violated any US laws.

Yeah, Europol will go hard on this as well. And yeah doesn't matter what they call it, ICO/ITO/IPO that was why I said they changed the name. It implies they knew that what they were doing would have repercussions.

[EnzoBlaque]

these stories are starting to look very similar to the news that was being released right before last years big push to $1200

get ready guys

[Honeypot]

This was a glaring issue regarding securities for a long, long time.

Professionals and serious devs would have considered this ages ago.

Unless they aren't US based.

Don't be so sure that just because they aren't US based they are in the clear.  Lots of countries have securities laws and are perfectly willing to cooperate with the US government if they violated any US laws.

US based or not, money know no bounds.

There are certain unspoken limits that you cannot break before the gloves come off and you can't hide behind lawyers anymore.

[erre]

But will the victims be refunded in dollars or in bitcoins?

And, if in dollar-equivalent, will the court consider the price at the moment of the scmost or the actual price?

[djm34]

This was a glaring issue regarding securities for a long, long time.

Professionals and serious devs would have considered this ages ago.

Unless they aren't US based.

Don't be so sure that just because they aren't US based they are in the clear.  Lots of countries have securities laws and are perfectly willing to cooperate with the US government if they violated any US laws.

Yeah, Europol will go hard on this as well. And yeah doesn't matter what they call it, ICO/ITO/IPO that was why I said they changed the name. It implies they knew that what they were doing would have repercussions.

Those ICO/ITO/IPO exists only because morons are gullible enough to think they will make them rich... (and they pretty much okay in participating in a pump and dump scheme (another fraud) assuming they can dump on somebody else...)
Is there a law preventing people to hurt themselve with an hammer ? Yes and no... Actually if you hit yourself with an hammer expecting to get insurance money... this is also called a fraud...
Actually anybody participating in a Ponzy scheme should be prosecuted... I am pretty sure some of the people did get their 7% interest a week (with other people money...   btw what is the btccointalk nickname of that guy just no to be scammed while he kill time in prison  ) and they probably recommended the guy to others too...

Before in prison, there were people with big muscle, now we will see lots of nerds in prison.... that will be hard for them