Australia crushes on Fraudulent and Deceptive ICO

Australia’s financial regulator is repressing on misleading initial coin offerings (ICOs), referring on “a serious breach of the Australian law”
03 May 2018   776959

In the result of the regulator’s requests, some issuers have stopped their token sales or are updating their structures. On Tuesday the Australian Securities and Investments Commission (ASIC) declared  that it is taking measures “on misleading or deceptive conduct in the marketing and selling of digital or virtual tokens via initial coin offerings (ICOs).” ASIC is an independent Australian governmental structure that conducts as the country’s corporate regulator.

ASIC is issuing inquiries to ICO issuers and their advisers where we identify conduct or statements that may be misleading or deceptive. This is in addition to our inquiries where we identify potentially unlicensed conduct. As a result of our inquiries, some issuers have halted their ICOs or have indicated the ICO structure will be modified.
ASIC
(The Australian Securities and Investments Commission)

ASIC has also refreshed its information sheet on ICOs and cryptocurrency which defines “misleading or deceptive conduct.”

If you are acting with someone else’s money, or selling something to someone, you have obligations. Regardless of the structure of the ICO, there is one law that will always apply: you cannot make misleading or deceptive statements about the product. This is going to be a key focus for us as this sector develops. 
John Price, 
Commissioner, ASIC

The Commission presented 4 examples of what this conduct may entail. “The use of social media to generate the appearance of a greater level of public interest in an ICO” is the 1 on the list, then “undertaking or arranging for a group to engage in trading strategies to generate the appearance of a greater level of buying and selling activity for an ICO or a crypto-asset.” Also, “failing to disclose adequate information about the ICO” and “suggesting that the ICO is a regulated product or the regulator has approved the ICO if that is not the case” are banned as well.

SEC to Accuse Opporty International in Illegal ICO

The company had sold $600k worth OPP Tokens, which are being considered by the watchdog as an unregistered securities
22 January 2020   114

The US SEC claims that Opporty International has raised about $ 600,000 from nearly 200 investors in the illegal ICO process, and its founder, Sergey Gribnyak, is accused of conducting a fraudulent initial coin offering process.

According to the US SEC, the blockchain company sold OPP Tokens, which are unregistered securities with digital assets.

The Securities Commission claims that the blockchain company Opporty lied to its users, claiming that their ICO was regulated.

The SEC claims that Opporty has condoned several illegal acts, including the misappropriation of third-party content without endorsement or attribution, to create the false impression that actual users of the platform created this content. Regulators say the defendants falsely told their potential investors that they had “taken on board” the company with more than 6,000 trusted suppliers.

As stated in the SEC complaint, Opporty violated five sections of the Securities and Exchange Act. Regulators are seeking an injunction to allow the company to place digital or other securities. The document also mentions Clever Solution Inc, another business run by Gribnyak, accused of, among other things, extortion.