Crowdfunding ICO With Mystery Partner

Would you invest in a company that MAY have a “mystery partner”?

Under the Securities Act of 1933, investors are entitled to “full and fair disclosure” about the company offering the securities.

But when a company is crowdfunding for “donations” in exchange for crypto-currency and announces “exciting news” about “efforts to establish the largest cryptocurrency collaboration to hit the market”…with a “global organization with a vast network of high traffic sites” that “is looking to enter the cryptocurrency market and form a strategic business alliance with” the issuer,” there is actually:

  • no news in that announcement,
  • lots of puffery (if it’s only that) and
  • no information as to who the global organization could be.

Hardly informative.

Watch out.

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at:
This entry was posted in accredited investor, balance, CFTC, Congress, Consumer Financial Protection Bureau, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, fraud, Funding Portals, Investments, Jobs, Legislative Intent, States, technology, VC, Venture Capital and tagged , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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