Moreover, Zaslavskiy falsely advertised that REcoin experienced a”team of attorneys, professionals, brokers and accountants” who’d invest the proceeds from the REcoin ICO into real estate, that 2.8 million REcoin tokens were sold (just about 1,000 investors paid for REcoin tokens) and the investment from Diamond tokens was”hedged by bodily diamonds.”
“Stripped of the 21st-century jargon,” the court said, referring to Zaslavskiy’s ICO advertising solicitations, the indictment explained a”scam, replete with shared characteristics of many financial frauds.” The court added,”just labeling a investment opportunity since’virtual money’ or’cryptocurrency’ doesn’t transform an investment contract–a collateral –right into a money,” and does not, therefore, eliminate the offerings from the ambit of securities law.
As he confessed at his guilty plea, Zaslavskiy fraudulently marketed RECoin as”The First newly Cryptocurrency Backed by Real Estate,” and subsequently touted Diamond within a”exclusive and tokenized membership pool” hedged by diamonds. In reality, Zaslavskiy purchased neither real estate nor diamonds, along with the certificates he delivered to investors weren’t backed by the promised blockchain technology.
The sentencing, initially scheduled for April 19, 2019, is rescheduled to May 20, 2019.
The post NY Court reschedules sentencing of Maksim Zaslavskiy at ICO fraud case appeared first on FinanceFeeds.
Earlier in 2018, United States District Court Judge Raymond J. Dearie refused Zaslavskiy’s motion to dismiss the indictment. Zaslavskiy claimed the securities legislation did not apply to cryptocurrency offerings. The court declared the validity of the laws, noting that”there can be no serious argument” the indictment was adequate. The court further held that a jury was not able to decide when REcoin and Diamond tokens were all securities. This is based on rulings in similar circumstances.
In addition to this criminal charges, the Securities and Exchange (SEC) has filed civil charges from Zaslavskiy. The civil case was stayed pending resolution of this criminal issue.
The sentencing of Maksim Zaslavskiy, that has pleaded guilty to conspiracy to commit securities fraud in relation to two Initial Coin Offerings (ICOs), has been adjourned. An executive order filed with the New York Eastern District Court on Tuesday, March 12, 2019, grants the petition issued with the defendant’s counselor about rescheduling the Legislation as a result of personal issues.