SEС suspects two ICOs in fraud

REcoin and DRC World, led by Maxim Zaslavsky, are suspected in fraud by Securities and Exchange Commision
30 September

The Securities and Exchange Commission (SEC) brought charges of fraud against ICO start-ups for the first time. 

According to the SEC press release, the activities of the Diamond Reserve Club World (DRC World) and the REcoin Group Foundation, run by businessman Maxim Zaslavsky, revealed signs of fraudulent schemes, as well as violations of securities laws.

According to the SEC, during the two ICO-campaigns Zaslavsky sold crypto-loans that were not secured by assets. At the same time, according to the representatives of the Commission, the entrepreneur assured REcoin participants that the funds are being attracted "for investing in real estate."

Regarding the DRC World project, Zaslavsky promised investors that the funds raised during ICO will be invested in diamonds and provide crowdsale participants will receive discounts on their products. However, according to the SEC, the entrepreneur did not show any business activity in these areas.

Among other things, Maxim Zaslavsky assured his investors that he is working with a "team of lawyers, professionals, brokers and accountants." According to the SEC, Zaslavsky did not engage in hiring personnel.

Also, the businessman said that during the ICO project REcoin attracted "from 2 to 4 million dollars", but, according to the SEC, only $ 300 thousand was collected.

Returning to another project of Maxim Zaslavsky, DRC World, it is worth noting that it was created already after the Commission intervened in the activities of REcoin.

Investors should be wary of companies touting ICOs as a way to generate outsized returns. As alleged in our complaint, Zaslavskiy lured investors with false promises of sizeable returns from novel technology.

Andrew M. Calamari
Director, SEC’s New York Regional Office

According to the urgent decision of the federal court of Brooklyn, both companies and all assets of Maxim Zaslavsky were frozen. Currently, the SEC requires companies to pay fines, as well as return all funds raised. In addition, the Commission will take measures to prohibit Zaslavsky to conduct ICO-campaigns in the future.

Ethereum network is still unstable

Byzantium had executed on Monday, but developers aren't ready to call the software transition complete
18 October

Organizations and developers are better off refraining from launching large projects until the Ethereum network is fully stable after the recent Byzantium update. This is said by the Gavin Wood, Parity Technologies head and reported by the Coindesk.

Since new versions of the software were released just days before the fork, much of the network has not yet been updated. So, at the time of press, slightly more than 25% of Parity customers updated, in Geth this indicator is slightly higher - about 59%. So, in total, the update was made about 45% of the network.

Another aspect that should also be taken into account is the short time for testing. In particular, the developers recalled previous versions of the software, discovering critical errors that could make the network vulnerable to DoS attacks or lead to incompatibility between nodes and, as a consequence, network sharing.

Therefore, the question of how safe the network is at the moment is fully justified and, taking into account what has been said above, remains open. This is exactly what Gavin Wood warned, recommending at this stage to refrain from launching large-scale projects.

In addition to the nodes that have yet to update, there is also a possibility that in the current Byzantium software there may be bugs that endanger the security of the Ethereum network. The most dangerous among them is a bug of consensus, in which nodes can not communicate. Its result can be the separation of the block-man into several incompatible chains.

As far as is known, at the moment developers are conducting extensive tests, trying to detect such bugs before they are active. As Gavin Wood says, if the network does contain such a bug, it will take several days to prove itself.

I don't think anyone believed the network was going to self-combust on block 4,370,000.

Gavin Wood
Head, Parity Technologies

The head of Parity Technologies is also convinced that if problems are discovered, the Ethereum development team will quickly release new updates designed to prevent any harm to the platform.