SEC Ban's An Illegal ICO Project For Life Time.

SEC Ban's An Illegal ICO Project For Life Time.

2018-08-15 | Eddy Morgan

SEC Ban's An Illegal ICO Project For Life Time.

The agency noted that it obtained officer-and-director and penny-stock bars against David Laurance and his company, Tomahawk Exploration LLC. Tomahawk, the SEC alleges, sought-after to lift funds through a "Tomahawk coin" token sale that used dishonorable promoting materials and false claims regarding oil drilling licenses.

As per the SEC’s report on this issue, Tomahawk coin is alleged to have been sold making a false promise that token holders would be able to convert their Tomahawk coins into equity from the anticipated oil production profits and secondary from the commerce of the tokens.

As per a recent statement issued by the authority yesterday, Laurance has neither admitted nor denied the SEC's allegations however he and his company have in agreement to the bars beside a penalty of $30,000 USD.

The officer-and-director bar prevents Laurance from serving in either capacity in a public company, whereas the penny stock bar prevents him from commerce or owning penny stocks. each prohibitions square measure permanent, consistent with the SEC.

The Cyber Unit head ‘ Robert Cohen’ aforesaid in a statement that:

"Investors ought to be aware of the chance of old-school frauds, like oil and gas schemes, masquerading as innovative blockchain-based ICOs,"

Notably, the SEC order indicates that the agency is currently scrutinizing token distributions for promoting functions, airdrops (or free distribution of tokens) represent securities sales.

As the agency noted:

"...Tomahawk issued tokens as a part of the Bounty Program to come up with interest within its ICO project, that benefited Tomahawk.”

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