Categories: ICO

SEC Smacks ICO Fraudster with $30,000 Fine, Lifetime Trading Ban

Click here to view original web page at www.ccn.com
Advertisement

The U.S. Securities and Exchange Commission (SEC) has issued an officer and director bar, a penny stock bar, and a penalty of $30,000 to a fraudulent ICO founder today.

According to the official press release, David T. Laurance was previously found guilty for taking part in deceitful security offerings.

Laurance’s LinkedIn profile shows that he is the president and CEO of oil drilling company Tomahawk Exploration LLC. He has worked at the company for over eight years. Laurence created “Tomahawkcoins” in June 2017 with a plan to raise $5 million in an initial coin offering (ICO). The project would then, he advertised, use the capital to drill ten wells in California.

However, the SEC claims that the ICO provided false information in their promotional statements. They “used inflated projections of oil production” and claimed that Tomahawk had already obtained leases for drilling on the sites. The firm also tried to portray Laurance as a principled individual by claiming that he had a “flawless background”.

The ICO wasn’t successful in raising enough money; however, the company set up a bounty program to trade Tomahawkcoins with online promotional services.

Robert A. Cohen, chief of the SEC’s Cyber Unit, said, “Investors should be alert to the risk of old-school frauds, like oil and gas schemes, masquerading as innovative blockchain-based ICOs.”

Both Laurance and Tomahawk were given cease and desist orders — they chose to avoid denying or accepting the claims. Furthermore, Laurance was permanently banned from working as an officer and a director under the officer and director bar, and from trading or owning stocks under the penny stock bar.

According to a recent study published by digital asset newsletter Diar, exit ICO scams have cost investors over $100 million. The highest position is held by Shenzhen Puyin Blockchain Group, a Chinese company, which was able to acquire $60 million from three different ICOs.

Following the recent developments, SEC published a warning for crypto investors today. The agency admonished investors to research the background of any individual who is selling cryptocurrencies.

The SEC also added that scammers often lure people into their projects by offering high returns on their investment. In order to combat this issue, the agency has created a search tool at Investor.gov which contains the details of various investment professionals. Another tool, SEC Action Lookup – Individuals (SALI), helps investors identify individuals who have been convicted by the SEC.

Featured Image from Shutterstock

Follow us on Telegram or subscribe to our newsletter here.

Join CCN's crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Hacked.com? Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Bitcoin May Be Laying the Groundwork for a Trend Reversal

Following Bitcoin’s recent plunge into the mid-$9,000 region, the cryptocurrency has been able to post a strong and sustainable bounce… Read More

5 hours ago

The blockchain/crypto week in quotes

“People who are watching the daily price of Bitcoin are really missing the whole point…The whole idea of Bitcoin is… Read More

5 hours ago

Brewing giant gives blockchain to African farmers

AB InBev Africa and BanQu have roped in blockchain technology to uplift smallholder farmers in the global brewing giant’s supply… Read More

5 hours ago

Self-Proclaimed Satoshi Nakamoto’s Bitcoin ‘Reveal’ Is an Epic Fail

The "big reveal" by the latest self-proclaimed Satoshi Nakamoto was an epic failure that overpromised and underdelivered. | Source: Shutterstock… Read More

5 hours ago

Litecoin May Soon Surge Despite Selling Pressure and Recent Dusting Attack

Litecoin has been wrapped in negative sentiment as of late, which has primarily been rooted it its lackluster price action… Read More

5 hours ago

The best ways to buy furniture online for Bitcoins

Overview Buying furniture for cryptocurrency For most of its existence, the Bitcoin community (BTC) believed that cryptocurrency would be a… Read More

11 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More