DOJ and SEC lawsuit against US citizen on the status of token in the market

US citizen defies DOJ and SEC claiming that the tokens he created are currencies and not securities
20 March 2018   301

Department of Justice (DOJ) and Securities and Exchange Commission (SEC) on March 19 filed documents against Maksim Zaslavskiy. The reason is the opposition to the claims of Mr. Zaslavskiy that tokens are considered as currencies and not securities. The matter concerns RECoin and Diamond token - those are tied to 2 ventures backed by real estate and diamond holdings respectively.

Now facing prosecution for securities fraud, the defendant claims that his 'investment opportunity' was no investment at all - it was just a sale of a currency backed by a commodity, first real estate (REcoin) and then diamonds (Diamond). The currency, according to the defendant, are the worthless certificates sent to investors that prompted some to ask for refunds.

 

U.S. government's lawyers

DOJ actually filed a lawsuit against Mr. Zaslavskiy on the matter of ICO fraud, and thus the US government suspects the defendant knew of the illegality of his actions. This incident follows a series of actions by US government to regulate the cryptocurrency sector of the US economy. This is especially notable in the light of a recent US Economy report that dedicated a whole chapter to the sector.

What is more, there is evidence that the defendant was, in fact, on notice that he was subject to the securities laws in sum and substance that the investor had nothing to worry about with respect to legal compliance. The SEC also contacted the defendant as early as August 15, 2017 requesting information about the REcoin ICO. The defendant wrote that he planned to hire an attorney, but instead proceeded with the Diamond ICO.

 

Excerpt from DOJ filing

SoftBank & Baidu to Invest in Atlas Protocol

Atlas Protocol was created by Nebulas Labs and xGoogler Blockchain Alliance
21 August 2018   130

The Atlas Protocol marketing module (ATP) has completed a round of attracting initial funding, led by SoftBank China Venture Capital (SBCVC), having collected several million dollars during it.

In a multimillion-dollar round, the exact amount of which was not disclosed, Baidu Ventures (BV), Danhua Capital and Fenbushi Digital also took part.

Atlas Protocol was created by Nebulas Labs and xGoogler Blockchain Alliance (xGBA). The "first developer" of Google Adwords, Jeremy Zhao and Columbia University Professor Ronggui Gu will serve as project advisors on technical issues.

Atlas Protocol plans to create a blockchain ecosystem and "to form a new paradigm of interactive marketing." According to the press release, ATP allows you to rank "calculated values ​​on the block and transfer value using tokens" using the ATP Smartdrop service application.

xGoogler Blockchain Alliance was formed in April this year as a community of former Google employees interested in blockchain technology. Its founders were the developers of projects Nebulas, Loopring and Gifto.