Sec Accused A Group Of Criminals In Conducting A Fraudulent Ico

✨ Megiddo

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The US Securities and Exchange Commission (SEC) has accused a group of criminals of conducting a fraudulent ICO, through which it raised more than $ 30 million. The
SEC accused Boaz Manor, a dual citizen of Canada and Israel, his business partner, as well as the company CG Blockchain Inc and BCT Inc SEZC violate anti-fraud and securities registration laws. The SEC suggests that the criminals raised more than $ 30 million through a fraudulent ICO, allegedly conducted to develop a blockchain solution for working with hedge funds.

The SEC claim states that between August 2017 and September 2018, defendants sold unregistered digital securities. The defendants claimed that they tested their technology with the participation of 20 hedge funds, however, as it turned out, they only sent a prototype of the solution to several funds that did not use it.

At the same time, Manor acted under the name of Shaun MacDonald (Shaun MacDonald) - an employee of his colleague from New Jersey Edith Pardo (Edith Pardo), who led the company. According to Joseph Sansone, head of the SEC's market fraud investigation department, Manor used someone else's name to hide his criminal past - in 2012, he was sentenced to four years in prison for assigning $ 106 million from a Canadian hedge fund where he was co-founder.

The New Jersey County Prosecutor's Office opened a criminal case against Manor and Pardo. The SEC demands that they return the illegally gained profit and pay the corresponding fines, and also asks the court to prohibit Manora and Pardo from continuing to act as officers or directors of open companies and to ever organize securities offerings.

Recall that this week the SEC issued a warning to investors, urging them to be wary of initial public offerings (IEOs).
 
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