The Blockchain Bitcoin & Crypto Weekly CXO Briefing is all you need to know, each week, jargon free for CXO level business leaders and investors who will use this technology to change the world. Each week we select the 3 news items that matter and explain why and link to one expert opinion.
For the intro to this weekly series, please go here.
News Item 1: SEC Halts Fraudulent Scheme Involving Unregistered ICO
Decrypted: The SEC filed an action to halt the initial coin offering (ICO) of Centra Tech, Inc., charging that Sohrab Sharma and Rober Farkas, the two co-founders of Centra, orchestrating a fraudulent initial coin offering (ICO) that raise funds from investors through the sale of unregistered securities. Publicly promoted by former professional boxer Floyd Mayweather, the Centra ICO raised over $32 million from investors worldwide.
Sharma and Farkas allegedly claimed that funds raised in the ICO would help build a suite of financial products. They claimed, for example, to offer a debit card backed by Visa and Mastercard that would allow users to instantly convert hard-to-spend cryptocurrencies into U.S. dollars or other legal tender,” the SEC complaint outlines.
Binance already announced plans to delist CTR from its platform.
Our take: Despite Bitcoin's dropping prices, public enthusiasm for cryptocurrencies, blockchain and ICOs is high, continuing to attract investors. ICOs continue to rake in the big bucks. Indeed, three months into 2018, already $4.8 billion in funding has already been raised through various token sales.
Over the last year, cryptocurrencies have been a focus of the SEC and other regulatory authorities around the world, cautioning investors about the risks involved.
Earlier in March, the SEC issued "dozens" of subpoenas and information requests from technology companies and advisors involved in new cryptocurrency schemes.
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