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Shady ICO Issuers Are Taking 'Bags of Cash' To Border, US Says (bloomberg.com)

Posted by msmash on from the of-course-they-are dept.

A top financial regulator gave a strong warning this week that U.S. scrutiny of initial coin offerings is just getting started. From a report: Securities and Exchange Commission Chairman Jay Clayton, speaking at a conference in New York, said companies raising money through digital-token sales shouldn't have any illusions that the government will treat them differently than firms participating in traditional stock offerings. He added that the market deserves close attention because the SEC has already seen examples of fraudsters fleeing the country after persuading U.S. investors to back their ICOs. "I am not going to change the way we approach the offering and trading of securities as a result of the fact that you put it in the form of a token," Clayton said at the Sandler O'Neill Global Exchange and Brokerage Conference. "I'm protecting the integrity of the market. The behavior we see in this is pretty bad. We've got guys with bags of cash headed to the border. That's not our securities market."

6 of 46 comments (clear)

  1. Everyone has a scam but me. by registrations_suck · · Score: 4, Funny

    Everyone has a scam but me. Bastards!!

  2. lolsaywatnow? by Thud457 · · Score: 2

    Shady ICO fraudsters are taking bags of cash across the border exactly where now? That sounds risky, somebody might steal their bags.

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    the preceding comment is my own and in no way reflects the opinion of the Joint Chiefs of Staff

  3. Day late and a dollar short by jandrese · · Score: 4

    So the regulators are just now waking up to the fact that this ICO explosion is almost entirely scams and money laundering? Are they going to take another two years to actually start prosecuting? This whole situation is completely ridiculous and the government has been sitting on the sidelines going "this is fine".

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    I read the internet for the articles.
    1. Re:Day late and a dollar short by iggymanz · · Score: 2

      only stupid people fell for them. just like only stupid people *invest* in bitcoin. serves them right

  4. Bags of cash from Minnesota too by John+Jorsett · · Score: 4, Informative

    The Powerlineblog guys have been running a series of posts about the state of Minnesota getting scammed on reimbursements for phony child care services and cash getting shipped out in bags back to the home countries of the immigrants who are bilking the system. They say it's gotten so bad that people are buying "shares" of fake child care providers in order to participate in the looting, and Minnesota Bureau of Investigation is busily investigating and indicting people.

  5. Re:Every ICO tarred with same brush? by sexconker · · Score: 4, Insightful

    Every ICO is a scam.