Indian Officials Issue Cautionary Warning Against Cryptocurrency Trading.
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New York 'Justin Cheng' Resident Pleas Guilty In 2018 ICO Fraud.
2021-04-21 | Mike Hallen
“Cheng lied to the SBA and a number of other banks about ownership of his firms, the number of individuals employed, and the way any loan proceeds would be applied, using forged and fraudulent documents within the process. Cheng spent much of the cash on personal luxury items.The self-described “serial entrepreneur” also pled guilty to operating a fraudulent ICO between August to October 2018 for his firm. Earlier in 2018, Cheng solicited investors to participate within the ICO for his firm, Alchemy Coin Technology Limited, while making false statements about the firm's finances and readiness of its p2p lending platform, and failing to disclose the ICO was an unlicensed offering. The DOJ explained:
“These investments were obtained via materially false and misleading statements and omissions regarding Alchemy Coin’s access to capital, use of investor proceeds, the merchandise readiness of its purported blockchain-based p2p lending platform, and therefore the registration of its tokens as a part of an ICO [Initial Coin Offering].”District Judge Alison J. Nathan set a sentencing date for 3rd Aug., with Cheng facing up to 80 years in prison.
