Scam ICO Get $30k Fine and Lifetime Ban from SEC

Scam ICO Get $30k Fine and Lifetime Ban from SEC

The Securities and Exchange Commission (SEC) of the United States has waited out new prohibitions against the founder of an ICO (Initial Coin Offering). The SEC has established that the company was undertaking fraudulent activities.

Tomahawk Exploration LLC is alleged to raise funds through misleading marketing materials and false claims about oil drilling licenses. 

The company was planning to raise funds through “Tomahawk” coin. They claimed that the users would be able to convert the crypto coins into equity and that they will be able to make profits through oil production. The company also said that the users will be able to earn extra profit through secondary trading of the tokens.

After being fined $30,000, David Laurance, Director, Tomahawk Exploration LLC, has neither admitted nor denied these allegations. Though the company has agreed to pay the fine.

The SEC is also looking into other methods that companies are using to marketing their ICOs. Airdrop is one such method that is used by companies to distribute free-tokens to users in exchange for joining their social media groups. Bounty programs is another way that ICOs use to generate buzz around their company.

As of 2018, one out of every two ICO has failed. Thousands of people invested in cryptocurrencies as a way to get-rich-quick. However, people need to understand that ICOs are like any other investment, that means that they carry a risk with them. People should be mindful to not fall prey to these bold claims and should perform thorough research before investing their money. is your premier source for news, scams and upcoming ICOs from across the globe. It allows you to research and plan your investment to ensure that you get the bang for your buck.

No Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

ICO and Cryptocurrency Trends In 2019
ICO & Cryptocurrency Trends To Look For In 2019

2019 has started with a leap in the cryptocurrency industry. Seeing the same, experts in the cryptocurrency and …

ICO Operators continue to Suffer due to SEC's Unconducive Regulations
ICO News
ICO Operators continue to Suffer due to SEC’s Unconducive Regulations

Many of us are already aware that the SEC of the United States has been actively taking measures …

FactSet Takes Blockchain Terminal Affiliate to Court
ICO News
FactSet Takes Blockchain Terminal Affiliate to Court

According to documents published by the Supreme Court for the New York State, a financial research company based …

Recent Blogs

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!