China & Tencent to Fight Blockchain Security Risks

Vice President of Tencent Bin Ma announced the creation of the China Blockchain Security Alliance
22 June 2018   327

Technological giant Tencent began to cooperate with the Chinese government on combating the risks associated with the blockchain, CoinDesk reports.

Tencent's Vice President Bin Ma announced the creation of the China Blockchain Security Alliance during the Blockchain Security Forum in Beijing.

The forum was organized by the Association of Technology Markets of China and is aimed at coordinating the work of various organizations on the "healthy development of the blockchain industry".

The security alliance of China's blockchain will include Tencent Security unit, as well as the Blockchain Case Study Center, the Association of China's Technology Markets and more than 20 public and private institutions.

The decision to form the structure was made against the backdrop of an increase in the number of crimes related to the blockchain in China. In April, the state edition of Xinhua reported that the Xi'an city police in the central part of the country suspended the activity of the financial pyramid, in the promo materials of which the developing technology was mentioned. The victims of the scheme are over 13,000 investors who invested about $ 13 million in 17 days.

SEC to Slap ICO Founder With $30K Fine

Additionally, David Laurance, founder of Tomahawk Exploration LLC got 2 lifetime bans
15 August 2018   119

The US Securities and Exchange Commission (SEC) on Tuesday reported that it has issued two new bans directed against David Laurence, the founder of Tomahawk Exploration LLC. Tomahawk allegedly stands behind fraudulent ICO, writes CoinDesk.

Laurence, according to the SEC, raised funds through the sale of Tomahawkcoin tokens, in the process of using misleading advertising materials and fraudulent statements that it is a tenant of drilling sites.

Moreover, the sale of Tomahawkcoin tokens, according to the SEC, was accompanied by a false promise that "the holders of tokens will be able to exchange Tomahawkcoin for shares and receive a potential profit from oil production and secondary tokens trading."

According to the SEC, Lawrence neither acknowledged nor denied the charges, but he and his company agreed to these bans, as well as a fine of $ 30,000.

...Tomahawk issued tokens as part of the Bounty Program to generate interest in the ICO, which benefited Tomahawk. Distribution of tokens that are securities in exchange for promotional services to advance the issuer's economic objectives or create a public market for the securities constitute sales for purposes of Section 5 of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
 

SEC

The first prohibition of the SEC is a ban on the director's work in public companies, and the second does not allow Lawrence to own and trade in so-called "penny" shares. Both prohibitions, according to the announcement of the SEC, are lifelong.