Tokensales Still 'Rampant', China State TV Says

Country's highest-level government mouthpiece, has hit out at domestic ICOs that it says are still "rampant", despite a 2017 ban
23 May 2018   446

China Central Television (CCTV), the country's largest government mouthpiece, paid attention to the ICO theme, saying that this sphere, despite the ban introduced in 2017, is still "rampant." This is reported by CoinDesk.

During the Financial News broadcast, the media reported that the ban on the ICO was imposed last September by the People's Bank of China did not deter local investors from investing in the crypto sector. On the contrary, their desire for rapid enrichment led to the rise of this area of ​​the economy.

Further, CCTV told about the sharp rise, as the Chinese crypto community calls them, "air coins" - told about tokens, for which there are no legally registered companies - and stated that the number of these "air coins" increased by 30 times after the ICO ban.

While many business entities have moved their projects overseas following the ICO ban, a lot of these 'air coins' carried on fundraising in China without migration because they are loosely organized as a temporary team, not even a formal business entity.
 

CCTV

These projects often state that they are connected with well-known crypto-currency investors like Li Xiaolai, one of the first investors and bitocain evangelists in China, to appear legitimate.

99.99 percent of the time, I'm being associate with these projects without even knowing it. There's always this fear of missing out (FOMO) among investors. And when they can't make judgments by themselves, they tend to refer to whoever influential is associated with the project.
 

Li Xiaolai

Cryptocurrency investor

China's central television is not the first time trying to tell the public about the "chaos" that prevails in the crypto-currency market. Simultaneously, China's law enforcement agencies stepped up efforts to combat projects aimed at attracting investor funds through the sale of tokens.

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SEC to Slap ICO Founder With $30K Fine

Additionally, David Laurance, founder of Tomahawk Exploration LLC got 2 lifetime bans
15 August 2018   118

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.