Wednesday, June 29, 2022
  • Login
198 Japan News
No Result
View All Result
  • HOME
  • BUSINESS NEWS
  • VIDEO NEWS
  • FEATURED NEWS
    • JAPAN US TRADE NEWS
    • JAPAN EU NEWS
    • JAPAN UK NEWS
    • JAPAN INDIA NEWS
    • JAPAN RUSSIA NEWS
    • JAPAN GULF NATIONS NEWS
    • JAPAN AFRICA NEWS
    • JAPAN EGYPT NEWS
    • JAPAN NIGERIA NEWS
    • JAPAN MEXICO NEWS
    • JAPAN BRAZIL NEWS
    • JAPAN THAILAND NEWS
    • JAPAN INDONESIA NEWS
  • CRYPTO
  • POLITICAL
  • TECHNOLOGY
  • JAPAN AGRICULTURE NEWS
    • JAPAN MANUFACTURE NEWS
    • JAPAN AGRICULTURE NEWS
    • JAPAN IMMIGRATION NEWS
    • JAPAN UNIVERSITY NEWS
    • JAPAN EDUCATION NEWS
    • JAPAN VENTURE CAPITAL NEWS
    • JAPAN JOINT VENTURE NEWS
    • JAPAN BUSINESS HELP
    • JAPAN PARTNESHIPS
  • ASK IKE LEMUWA
  • CONTACT
198 Japan News
  • HOME
  • BUSINESS NEWS
  • VIDEO NEWS
  • FEATURED NEWS
    • JAPAN US TRADE NEWS
    • JAPAN EU NEWS
    • JAPAN UK NEWS
    • JAPAN INDIA NEWS
    • JAPAN RUSSIA NEWS
    • JAPAN GULF NATIONS NEWS
    • JAPAN AFRICA NEWS
    • JAPAN EGYPT NEWS
    • JAPAN NIGERIA NEWS
    • JAPAN MEXICO NEWS
    • JAPAN BRAZIL NEWS
    • JAPAN THAILAND NEWS
    • JAPAN INDONESIA NEWS
  • CRYPTO
  • POLITICAL
  • TECHNOLOGY
  • JAPAN AGRICULTURE NEWS
    • JAPAN MANUFACTURE NEWS
    • JAPAN AGRICULTURE NEWS
    • JAPAN IMMIGRATION NEWS
    • JAPAN UNIVERSITY NEWS
    • JAPAN EDUCATION NEWS
    • JAPAN VENTURE CAPITAL NEWS
    • JAPAN JOINT VENTURE NEWS
    • JAPAN BUSINESS HELP
    • JAPAN PARTNESHIPS
  • ASK IKE LEMUWA
  • CONTACT
No Result
View All Result
198 Japan News
No Result
View All Result
Home JAPAN CRYPTO NEWS

US SEC Charges Australian Man for $41M ICO Fraud

by 198 Japan News
January 7, 2022
in JAPAN CRYPTO NEWS
Reading Time: 13 mins read
A A
0
Share on FacebookShare on Twitter


The US
 
 Securities and Exchange Commission (SEC 
Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.What Does the SEC Do?In order to achieve its obligations, the SEC enforces statutory requirements that public companies and other regulated companies submit quarterly and annual reports.Such reports are instrumental in unearthing or bringing to light any market abuse or improper action, ensuring a high degree of compliance out of market participants.These reports are also essential in maintaining the transparency of equity markets, namely private companies.Quarterly and semiannual reports from public companies are important for investors to make sound decisions when investing in the capital markets. Investment in the capital markets is not guaranteed by the federal government with such safeguards put in place to add a layer of compliance for example.The SEC is composed of five divisions: Corporate Finance, Trading and Markets, Investment Management, Enforcement, and Economic and Risk Analysis.With 11 regional offices in the US, the SEC helps police markets nationwide. In recent years the agency has also relied on additional forces for assistance as well, with the installment of the SEC Office of the Whistleblower.Founded in 2010, the SEC Whistleblower program has since awarded over $400 million to whistleblowers.

The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.What Does the SEC Do?In order to achieve its obligations, the SEC enforces statutory requirements that public companies and other regulated companies submit quarterly and annual reports.Such reports are instrumental in unearthing or bringing to light any market abuse or improper action, ensuring a high degree of compliance out of market participants.These reports are also essential in maintaining the transparency of equity markets, namely private companies.Quarterly and semiannual reports from public companies are important for investors to make sound decisions when investing in the capital markets. Investment in the capital markets is not guaranteed by the federal government with such safeguards put in place to add a layer of compliance for example.The SEC is composed of five divisions: Corporate Finance, Trading and Markets, Investment Management, Enforcement, and Economic and Risk Analysis.With 11 regional offices in the US, the SEC helps police markets nationwide. In recent years the agency has also relied on additional forces for assistance as well, with the installment of the SEC Office of the Whistleblower.Founded in 2010, the SEC Whistleblower program has since awarded over $400 million to whistleblowers.
Read this Term
) has charged and settled with Craig Sproule and his two companies, Crowd Machine and Metavine, for fraudulently raising $40.7 million via an
 
 initial coin offering (ICO 
Initial Coin Offering (ICO)

An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Accompanying most major ICOs has been the prevalence of a whitepaper. A whitepaper serves as both a persuasive sales pitch, and in-depth report on a specific topic that presents a problem and provides a solution. Most marketers relied on whitepapers to educate their respective audience about a particular issue, or explain and promote a particular methodology that an ICO could potentially solve. The information enclosed in whitepapers have historically been met with skepticism.Why ICOs Have Fallen Out of FavorThis is due in large part to the early days of ICOs, as this practice was highly unregulated and extremely risky. Because there were no regulations delineating who could and could not hold an ICO, many bad actors or incompetent technologists saw the practice as an opportunity to grab a lot of fast cash.As a result, many investors have lost quite a lot of money – their tokens were either never returned to them, or the companies who issued the tokens failed within several months of the token’s official launch.Regulators around the world have cracked down on the practice, which has resulted in a slightly “cleaner” ICO space.However, ICOs have garnered a pretty bad reputation and are still regarded as generally untrustworthy. As such, other methods of fundraising, such as Initial Exchange Offerings (IEOs) and Security Token Offerings (STOs) have been born.

An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Accompanying most major ICOs has been the prevalence of a whitepaper. A whitepaper serves as both a persuasive sales pitch, and in-depth report on a specific topic that presents a problem and provides a solution. Most marketers relied on whitepapers to educate their respective audience about a particular issue, or explain and promote a particular methodology that an ICO could potentially solve. The information enclosed in whitepapers have historically been met with skepticism.Why ICOs Have Fallen Out of FavorThis is due in large part to the early days of ICOs, as this practice was highly unregulated and extremely risky. Because there were no regulations delineating who could and could not hold an ICO, many bad actors or incompetent technologists saw the practice as an opportunity to grab a lot of fast cash.As a result, many investors have lost quite a lot of money – their tokens were either never returned to them, or the companies who issued the tokens failed within several months of the token’s official launch.Regulators around the world have cracked down on the practice, which has resulted in a slightly “cleaner” ICO space.However, ICOs have garnered a pretty bad reputation and are still regarded as generally untrustworthy. As such, other methods of fundraising, such as Initial Exchange Offerings (IEOs) and Security Token Offerings (STOs) have been born.
Read this Term
).

According to the charges filed at a California court, the Australian citizen made materially false statements about the offer and sale of the unregistered ICO.

The official announcement on Thursday detailed that the ICO proceeds were raised between January and April 2018. The project promised investors that the money will be used to develop a new technology for Metavine that would enable the software to run on a decentralized network of users’ own computers.

However, Sproule diverted more than $5.8 million of the funds and injected them into a gold mining entity in South Africa. All these were done without informing the investors.

Related content

Additionally, the agency pointed out that the ICO was unregistered, and the tokens were sold through an ICO pool to even United States-based investors and did not check if they were accredited or not.

Consented

The charges brought against Sproule and Crowd Machine include violation of antifraud and registration provisions of the federal securities laws. All the parties have already consented to the judgments of permanent enjoin from violation of any provisions in future and participating in the securities offering, without admitting or denying any of the charges.

Moreover, they were ordered to disable the sold IPO tokens and remove than from exchanges. Furthermore, Sproule has been ordered to pay a civil penalty of $195,047, while the disgorgement and penalties on Crowd Machine will be determined later.

“As alleged, Sproule and Crowd Machine misled investors about how they were using ICO proceeds, spending funds on an entirely unrelated scheme,” Kristina Littman, the Chief of the SEC Enforcement Division’s Cyber Unit, said in a statement. “We will continue to hold accountable issuers of digital asset securities who fail to provide fulsome and truthful disclosure to the public.”

The US
 
 Securities and Exchange Commission (SEC 
Securities and Exchange Commission (SEC)

The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.What Does the SEC Do?In order to achieve its obligations, the SEC enforces statutory requirements that public companies and other regulated companies submit quarterly and annual reports.Such reports are instrumental in unearthing or bringing to light any market abuse or improper action, ensuring a high degree of compliance out of market participants.These reports are also essential in maintaining the transparency of equity markets, namely private companies.Quarterly and semiannual reports from public companies are important for investors to make sound decisions when investing in the capital markets. Investment in the capital markets is not guaranteed by the federal government with such safeguards put in place to add a layer of compliance for example.The SEC is composed of five divisions: Corporate Finance, Trading and Markets, Investment Management, Enforcement, and Economic and Risk Analysis.With 11 regional offices in the US, the SEC helps police markets nationwide. In recent years the agency has also relied on additional forces for assistance as well, with the installment of the SEC Office of the Whistleblower.Founded in 2010, the SEC Whistleblower program has since awarded over $400 million to whistleblowers.

The Securities and Exchange Commission (SEC) is one of the most widely known independent authorities in the United States. The SEC has a wide range of responsibilities, helping police markets and curbing against abuse. This includes enforcing federal securities laws, proposing securities rules, and regulating the US’ stock and options exchanges.As one of the paramount regulatory authorities in the US, the SEC is responsible for the oversight of public companies in the aforementioned segments.What Does the SEC Do?In order to achieve its obligations, the SEC enforces statutory requirements that public companies and other regulated companies submit quarterly and annual reports.Such reports are instrumental in unearthing or bringing to light any market abuse or improper action, ensuring a high degree of compliance out of market participants.These reports are also essential in maintaining the transparency of equity markets, namely private companies.Quarterly and semiannual reports from public companies are important for investors to make sound decisions when investing in the capital markets. Investment in the capital markets is not guaranteed by the federal government with such safeguards put in place to add a layer of compliance for example.The SEC is composed of five divisions: Corporate Finance, Trading and Markets, Investment Management, Enforcement, and Economic and Risk Analysis.With 11 regional offices in the US, the SEC helps police markets nationwide. In recent years the agency has also relied on additional forces for assistance as well, with the installment of the SEC Office of the Whistleblower.Founded in 2010, the SEC Whistleblower program has since awarded over $400 million to whistleblowers.
Read this Term
) has charged and settled with Craig Sproule and his two companies, Crowd Machine and Metavine, for fraudulently raising $40.7 million via an
 
 initial coin offering (ICO 
Initial Coin Offering (ICO)

An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Accompanying most major ICOs has been the prevalence of a whitepaper. A whitepaper serves as both a persuasive sales pitch, and in-depth report on a specific topic that presents a problem and provides a solution. Most marketers relied on whitepapers to educate their respective audience about a particular issue, or explain and promote a particular methodology that an ICO could potentially solve. The information enclosed in whitepapers have historically been met with skepticism.Why ICOs Have Fallen Out of FavorThis is due in large part to the early days of ICOs, as this practice was highly unregulated and extremely risky. Because there were no regulations delineating who could and could not hold an ICO, many bad actors or incompetent technologists saw the practice as an opportunity to grab a lot of fast cash.As a result, many investors have lost quite a lot of money – their tokens were either never returned to them, or the companies who issued the tokens failed within several months of the token’s official launch.Regulators around the world have cracked down on the practice, which has resulted in a slightly “cleaner” ICO space.However, ICOs have garnered a pretty bad reputation and are still regarded as generally untrustworthy. As such, other methods of fundraising, such as Initial Exchange Offerings (IEOs) and Security Token Offerings (STOs) have been born.

An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Accompanying most major ICOs has been the prevalence of a whitepaper. A whitepaper serves as both a persuasive sales pitch, and in-depth report on a specific topic that presents a problem and provides a solution. Most marketers relied on whitepapers to educate their respective audience about a particular issue, or explain and promote a particular methodology that an ICO could potentially solve. The information enclosed in whitepapers have historically been met with skepticism.Why ICOs Have Fallen Out of FavorThis is due in large part to the early days of ICOs, as this practice was highly unregulated and extremely risky. Because there were no regulations delineating who could and could not hold an ICO, many bad actors or incompetent technologists saw the practice as an opportunity to grab a lot of fast cash.As a result, many investors have lost quite a lot of money – their tokens were either never returned to them, or the companies who issued the tokens failed within several months of the token’s official launch.Regulators around the world have cracked down on the practice, which has resulted in a slightly “cleaner” ICO space.However, ICOs have garnered a pretty bad reputation and are still regarded as generally untrustworthy. As such, other methods of fundraising, such as Initial Exchange Offerings (IEOs) and Security Token Offerings (STOs) have been born.
Read this Term
).

According to the charges filed at a California court, the Australian citizen made materially false statements about the offer and sale of the unregistered ICO.

The official announcement on Thursday detailed that the ICO proceeds were raised between January and April 2018. The project promised investors that the money will be used to develop a new technology for Metavine that would enable the software to run on a decentralized network of users’ own computers.

However, Sproule diverted more than $5.8 million of the funds and injected them into a gold mining entity in South Africa. All these were done without informing the investors.

Related content

Additionally, the agency pointed out that the ICO was unregistered, and the tokens were sold through an ICO pool to even United States-based investors and did not check if they were accredited or not.

Consented

The charges brought against Sproule and Crowd Machine include violation of antifraud and registration provisions of the federal securities laws. All the parties have already consented to the judgments of permanent enjoin from violation of any provisions in future and participating in the securities offering, without admitting or denying any of the charges.

Moreover, they were ordered to disable the sold IPO tokens and remove than from exchanges. Furthermore, Sproule has been ordered to pay a civil penalty of $195,047, while the disgorgement and penalties on Crowd Machine will be determined later.

“As alleged, Sproule and Crowd Machine misled investors about how they were using ICO proceeds, spending funds on an entirely unrelated scheme,” Kristina Littman, the Chief of the SEC Enforcement Division’s Cyber Unit, said in a statement. “We will continue to hold accountable issuers of digital asset securities who fail to provide fulsome and truthful disclosure to the public.”



Source link

You might also like

CryptoCom Removes DOGE, SHIB, and 13 Other Altcoins From Earn Program CryptoCom Removes DOGE, SHIB, and 13 Other Altcoins from Crypto Earn 

Ethereum’s Vitalik Buterin Heaps Sarcastic Praise on EOS

Bybit Review [The Ultimate Guide 2022]

Tags: 41MAustralianchargesfraudICOmanSEC
Share30Tweet19

Recommended For You

CryptoCom Removes DOGE, SHIB, and 13 Other Altcoins From Earn Program CryptoCom Removes DOGE, SHIB, and 13 Other Altcoins from Crypto Earn 

by 198 Japan News
June 29, 2022
0

Crypto.com on Monday removed 15 altcoins including Dogecoin (DOGE) and Shiba Inu (SHIB) from its Crypto Earn program. The delisting of these cryptocurrencies will be effective from 27...

Read more

Ethereum’s Vitalik Buterin Heaps Sarcastic Praise on EOS

by 198 Japan News
June 27, 2022
0

Alex Dovbnya Ethereum’s Vitalik Buterin has bewildered the cryptocurrency community by recalling an old joke about EOS Vitalik Buterin has sarcastically praised EOS, a once-popular blockchain project, claiming...

Read more

Bybit Review [The Ultimate Guide 2022]

by 198 Japan News
June 27, 2022
0
Bybit Review [The Ultimate Guide 2022]

Bybit Pros24/7 Multilingual SupportMargin TradingInsurance FundHigh Bonuses and Low FeesBybit ConsComplicated for BeginnersNot Available in Many CountriesUnauthorized in the UKSmall Range of AssetsBybit is a Peer to Peer...

Read more

Which One Is the Winner?

by 198 Japan News
June 26, 2022
0

The crypto winter has brought many shocks to the market across the board, triggering massive layoffs in companies and sell-offs in digital assets that possed to be solid...

Read more

Binance Launches New Platform for VIP and Institutional Crypto Investors – Exchanges Bitcoin News

by 198 Japan News
June 26, 2022
0

Crypto exchange Binance has launched a new platform for VIP and institutional investors. The VIP program allows Binance users to “get rewarded with more discounts and VIP privileges”...

Read more
Next Post

Japan wary of anti-U.S. base sentiment after COVID-19 infection spike

US, Japan collaborate on new ventures, including developing hypersonic & space-based weaponry | WION

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest

Gravitas: China retaliates after Biden's Taiwan comment

37

CryptoCom Removes DOGE, SHIB, and 13 Other Altcoins From Earn Program CryptoCom Removes DOGE, SHIB, and 13 Other Altcoins from Crypto Earn 

June 29, 2022

Kyodo News Digest: June 29, 2022

June 29, 2022

1990 World Cup winner Matthaus expects Germany to beat Japan

June 28, 2022

Deborah James, British Cancer Campaigner and Podcaster, Dies at 40

June 28, 2022

Coronavirus pandemic latest: June 29, 2022

June 28, 2022

Finland, Sweden cleared for joining NATO as Turkey drops opposition

June 28, 2022
198 Japan News

198 Japan News will provide the latest news update as the government facing a growing challenging in preventing Japan from breaking apart along ethnic and religious lines.

198massmedia Group. USA. 3821 Dominion Drive, Dumfries, USA. 22026.

Toll Free 1 888 642 8433.
Contact: info@198japannews.com

LATEST UPDATES

CryptoCom Removes DOGE, SHIB, and 13 Other Altcoins From Earn Program CryptoCom Removes DOGE, SHIB, and 13 Other Altcoins from Crypto Earn 

Kyodo News Digest: June 29, 2022

1990 World Cup winner Matthaus expects Germany to beat Japan

Deborah James, British Cancer Campaigner and Podcaster, Dies at 40

Coronavirus pandemic latest: June 29, 2022

Finland, Sweden cleared for joining NATO as Turkey drops opposition

Japan to host G-7 summit in Hiroshima on May 19-21, 2023

Russian oligarch admits war is hurting Russia in rare break with Putin : worldnews

RECOMMENDED

Okinawa farmers, once finding wealth in pineapples, search for successors

CoinFLEX Follows Celsius in Suspending Withdrawals

Latin America’s new ‘pink tide’ gains pace as Colombia shifts left

US, Japan, Australia, UK form Pacific group to counter China

Ethereum’s Vitalik Buterin Heaps Sarcastic Praise on EOS

Pakistan Democratic Movement chief says he is ‘responsible for Imran Khan’s ouster’

CryptoCom Removes DOGE, SHIB, and 13 Other Altcoins From Earn Program CryptoCom Removes DOGE, SHIB, and 13 Other Altcoins from Crypto Earn 

Nissan suspends Russia production for six months

Copyright © 2021 198 Japan News.

No Result
View All Result
  • Browse the latest updates from Japan
  • Landing Page
  • Buy JNews
  • Support Forum
  • Contact Us

Copyright © 2021 198 Japan News.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In