Court Says Securities Fraud Case on Cryptocurrency Can Move Forward

More to come as Judge Raymond Dearie in the Eastern District of New York Federal court has ruled that securities law fraud cases can be brought against promoters of cryptocurrencies.

Now, the U.S. Securities and Exchange Commission’s case can move forward against Maksim Zaslavskiy, of Brooklyn resident who was arrested in November on charges that he defrauded investors after raising over $300,000 for his REcoin, a digital currency that was supposedly backed by real estate and another one supposedly backed by diamonds. Of course, there was no real estate or gems.

Zaslavskiy’s lawyers’ plea that the cryptocurrency was currency not securities was rejected by the judge, saying that the law must be interpreted broadly.


(Judge Raymond Dearie, Federal District Court of New York, Eastern District).

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, checkbook, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, discrepancies, fraud, review, SEC, technology, VC, Venture Capital, Wall Street and tagged , , , , , , , , , , , , , . Bookmark the permalink.

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