SEC Launched Fake ICO Website to Educate Investors

The SEC has created a fake ICO website to ensure investors can identify fraudulent company
17 May 2018   995

The U.S. Securities and Exchange Commission announced on Wednesday it has launched a mock ICO called HoweyCoin. The fake company states that the offer isn't real and users who try to invest in the token sale will instead be redirected to the regulator's education tools, which are aimed at pointing out the signs of fraudulent token sales.

howecoin websiteHoweyCoin website

According to the HoweyCoin website, most travel businesses require processing, centralized currency, and most importantly, nickel and dime fees that add up to literally billions. The fake company states that it is different because it utilizes the latest crypto-technology to allow travelers to purchase all segments without these limitations, allowing HoweyCoin users to buy, sell, and trade in a frictionless environment.

In a press release, the SEC also noted that the site includes a white paper with a complex yet vague explanation of the investment opportunity, promises of guaranteed returns, and a countdown clock that shows time is quickly running out on the deal of a lifetime.

Owen Donley, chief counsel of the SEC's Office of Investor Education and Advocacy, said that the site incorporates many of the hallmarks of fraudulent token sales - pertinent information for investors looking to avoid financial pitfalls.

Donley added that fraudsters can quickly build an attractive website and load it up with convoluted jargon to lure investors into phony deals, but fraudulent sites also often have red flags that can be dead giveaways if you know what to look for.

Gladius to Register Token as Security & Refund Investors

Startup self-reported in SEC on unregisted securities offering and cooperate with Commission, so it won't be fined
21 February 2019   95

Cryptocurrency startup Gladius Network LLC has informed the US Securities and Exchange Commission (SEC) about the sale of unregistered securities. On February 20, the SEC filed relevant charges.

During the ICO, the Gladius project raised $ 12.7 million in cryptocurrency equivalent for the development of a network for leasing computing facilities to protect against cyber attacks. The SEC stressed that the startup did not register their tokens as securities, as required by federal law, and did not agree to exclude them from the rules in the legal manner.

Moreover, tokensale was held after the publication of the SEC report on the situation with The DAO, in which the regulator stated that ICO can offer securities.

The press release says that Gladius contacted the SEC in the summer of 2018 and expressed interest in cooperating with the investigation. Thus, the agency refused to levy a fine, because the startup voluntarily agreed to return the funds to investors who require it and register the token in accordance with the provisions of the Securities Act of 1934.