United States Securities And Exchange Commission 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.

Maksim Zaslavskiy - CEO, Founder of REcoin
Maksim Zaslavskiy – CEO, Founder of REcoin

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.

REcoin Team (from foundico.com)
REcoin Team (from foundico.com)

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.

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 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.

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.

Federal district court in Brooklyn, N.Y
Federal district court in Brooklyn, N.Y

“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.

Spectiv (SIG) Initial Coin Offering – Decentralized Virtual Reality Streaming Platform

Spectiv presents a platform for dedicated virtual reality streaming which makes use of attention markets based on blockchain to back extensive implementation of virtual reality.

Some main features of this platform are inclusive of live VR streaming, for instance of sports functions, where viewers can take part at home. This platform is community-driven as well, letting regular users stream any individual experiences using their personal VR equipment.

In times to come, Spectiv aims to form their personal VR content by joining famous production firms and organizations. Similar to other virtual reality firms based on blockchain, Spectiv wants to attain a section of the multi-billion VR sector.

According to the Spectiv whitepaper, VR is expected to develop to $30 billion and more from $1 billion in 2016 by 2020. This ranks it among the quickest developing sectors in the globe.

How Spectiv Operates

The Spectiv environment involves the use of Signals tokens (Sigs) and another currency known as Specs. Sigs are ERC20 tokens which link attention markets with Ethereum blockchain to attain quicker development in the VR sector.

When curators share virtual reality content, they earn Sigs. Also, different tokens known as Spectiv Tokens or Specs exist. Specs offer a virtual reality token that backs internal platform workings such as buying premium content, tipping and promoting rewards.

Jointly, these tokens support the main functions of Spectiv, such as the formation of a dedicated platform for VR streaming, which can back typical adoption. They motivate users to form VR content and share it.

Features of Spectiv

In general, Spectiv offers a platform that enables organizations and users to stream their exceptional experiences to the globe in a simple and beneficial manner. Viewers can take part in the experiences from the house, via virtual reality.

This platform’s main features are:

  • VR Content that is Community-Driven

Regular users offer VR experiences. Spectiv permits common users to stream any private experiences using their personal VR Equipment.

This content can vary from expertly generated footage to uploads that are casually recorded.

This is the same as the variety of content you view on YouTube and different platforms for video streaming.

  • Business VR Events

Spectiv will host VR live streams for concerts, sporting functions and more, from top seat vicinities, offering the audience a captivating viewpoint of a specific function.

This enables users to view live events from the house and fully take part in the ambiance also.

To present these functions to an audience, it is the objective of Spectiv to directly join the function’s hosts.

  • Original VR Content from Spectiv

Spectiv provides original VR content that is generated with the most sophisticated VR technologies. The productions team of Spectiv will manage this. The original content of Spectiv shall be presented to the platform following the creation of crucial commercial components that are more community-driven.

Tokens (Specs and Sigs)

As stated earlier, two tokens will be used by the Spectiv platform. Specs are going to be utilized as an internal platform currency (for premium content, tipping, and other aims), while Sigs shall be utilized as a decentralized ERC20 token).

Sigs link attention markets to the Ethereum blockchain to promote development in the sector of VR and shall be formed and shared through a token creation crowdsale set for August 2017.

Spectiv and other variations for VR Streaming Platform

Spectiv is not the initial firm to recognize possibilities in the VR space. As a matter of fact, they are not even the initial blockchain firm to focus on the VR space. Therefore, what makes Spectiv vary from its rivals? How is it going to outlive its rivals to become the next VR YouTube?

Spectiv intends to stand out from the competition via its content that is user-driven. Spectiv illustrates itself as a ‘regionalized, user combined exchange of experiences of virtual reality.’
This means it is not simply a portal that viewers can utilize to view famous VR functions. It presents a surrounding where users all through the globe can share their personal experiences with other people.

South Korea and Bitcoin: Prohibition on Cryptocurrency ICOs in South Korea Literally Lacks Any Impact on Bitcoin

On Friday South Korea declared initial coin offerings (ICOs) prohibition. This was after the prohibition of ICO in China at the beginning of this month, which led to a brief decrease in value for key cryptocurrency offerings such as Ethereum (ETH) and Bitcoin (BC). The market was not affected this time.

On Friday BC trading was at $4,353 while the value of ETH was $291. During this publication, the two had increased with BC valued at $4,397 while ETH went up to $298. Local reports indicate that South Korea resolved to prohibit ICOs because of anxiety that cryptocurrency provides an ineffective financial speculation approach. This idea is usual among states when they are dealing with market control. Cryptocurrency is simply conflated with flat cash; however, it is not recognizable, making it extremely hard to tax.

More information from officials in South Korea regarding the prohibition show that the state is worried about the financial and information safety of residents who may be rendered victims by destructive cryptocurrency offerings. It seems that the state’s stand is that ICOs will possibly be a fraud, compared to the present system. In case this has a familiar ring to it, the reason is that this is a similar concept used by individuals such as the CEO of JP Morgan Jamie Dimon when they proclaim that Bitcoin is a scam or the market is a bubble on the verge of blowing up.

However, your opinion might change in regard to how seriously you take Dimon. After all, BC rivals him in various ways. Other cryptocurrency reports from outside South Korea show that according to police, hackers in North Korea unsuccessfully engaged in ‘spear-phishing’ campaign against numerous exchanges. Spear-phishing offers a curve on the traditional term, ‘I require your password for safety reasons.’ At least 25 workers from four varied firms reported spear-phishing efforts and local police have verified at least 10 different attacks from North Korea.

As hackers fail to conquer cryptocurrency security and a prohibition on ICO does not affect the coin value, the time has come to stop panicking each time a state that engages in business with China declares that it will prohibit ICOs or exchanges. Cryptocurrency is meant to be state-proof; this is completely theoretical but present indications still appear to support that guarantee.

Initial Coin Offering Regulation and Prohibition: Swiss and Australian Regulators Are Investigating ICOs And South Korea Has Banned ICOs

SWISS financial regulator has made an official post on their website about ICOs. So has the Australian financial regulator ASIC. Both are making inquiries into ICOs and we have a feeling they will in the future try to either regulate or prohibit them. At the same time the South Korean financial regulator has issued a press release stating that ICOs are now prohibited in South Korea.


Swiss, Australian and South Korean Regulators Weigh In On ICOs
Swiss, Australian and South Korean Regulators Weigh In On ICOs

These updates regarding ICOs, Cryptocurrency and regulators are nothing new. Up until now about a dozen regulators have weighed in on ICOs and either warned about them or even prohibited them, making them ilegal in some countries such as China and now also South Korea.


Learn more in following articles and posts: