SEC to Accuse 2 Men of Illegal UBI Blockchain Shares Sell

T.J. Jesky and Mark Destefano, allegedly earned $ 1.4 million in 10 days, selling shares of the Hong Kong company UBI Blockchain Internet
03 July 2018   301

The US Securities and Exchange Commission (SEC) accused two residents of the state of Nevada of illegally obtaining profits from the sale of securities of a company calling itself a "blockchain start-up".

According to the SEC statement released on Monday, lawyer T.J. Jesky and commercial affairs manager Mark Destefano, allegedly earned $ 1.4 million in 10 days, selling shares of the Hong Kong company UBI Blockchain Internet. Both accused in October 2017 received 72 thousand limited shares of this company and had to sell them at a strictly determined price - $ 3.7 per piece.

Jesky and Destefano sold the shares at a rate of 21 to almost 50 dollars - until the SEC in early January, according to a press release, did not freeze the sale of all shares of the company. The reason for the freeze was the unusual behavior of the stock price and questions to the reporting.

This case is a prime example of why the SEC has warned retail investors to be cautious before buying stock in companies that suddenly claim to have a blockchain business. This case involved both a trading suspension and people holding restricted shares who attempted to profit from the dramatic price increase with illegal stock sales that violated the registration statement.
 

Robert A. Cohen

Chief, SEC Enforcement Division’s Cyber Unit

According to the SEC, both defendants agreed to return 1.4 million dollars and pay a fine of $ 188,682, as well as follow court restrictions. However, none of them acknowledged and rejected the accusations of the department.

The SEC reported that assistance in investigating the incident was provided by the US Financial Services Authority (FINRA), the Mexican National Commission for Banks and Securities and the Panamanian Office for Stock Market Issues.

Gemini & Partners to Launch Virtual Commodity Association

Association is created to develop standards for the industry, promote transparency in the market and cooperate with regulators, including the CFTC
20 August 2018   92

Several major exchanges decided to create a new structure designed to eradicate manipulation in the digital assets market, Bloomberg reports.

The Virtual Commodity Association was formed by the founders of the exchange Gemini Cameron and Tyler Winklewoss. According to a statement released on Monday, the group also included Bitstamp, BitFlyer USA and Bittrex. Representatives of four trading platforms will meet in September to consolidate the provisions for the future functioning of the organization.

The Virtual Goods Association will develop standards for the industry, promote transparency in the market and cooperate with regulators, including the Commodity Futures Trading Commission of the United States (CFTC), in order to prevent manipulation of Bitcoin, Ethereum and other currencies.

As the temporary executive director of the organization, Maria Filipakis, who worked in the Financial Services Department of New York, was appointed, where she took part in the creation of a BitLicense.

Earlier, the Winklewoss brothers tried to launch their own ETF, tied to bitcoin, but the US Securities and Exchange Commission denied them twice, as the reasons for its decision, among other things, calling for the absence of adequate measures to prevent cryptocurrency market manipulations.