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).