In an effort to get ahead of the next round of scams, the US Securities and Exchange Commission (SEC) created and published its own version of an initial coin offering (ICO) scam website. It’s a rather innovative way at approaching investor education in the brave new world of cryptocurrency.
Also read: Federal Reserve Pres: People Want Dollar, Not Volatile Crypto
SEC Posts ICO Scam Site
“Combining the two most growth-oriented segments of the digital economy,” the mock SEC website reads, “blockchain technology and travel, Howeycoin is the newest and only coin offering that captures the magic of coin trading profits AND the excitement and guaranteed returns of the travel industry. Howeycoins will partner with all segments of the travel industry (air, hotel, car rental, and luxury segments), earning coins you can trade for profit instead of points.”
It really is a novel idea. SEC Chairman Jay Clayton explained, “The rapid growth of the ‘ICO’ market, and its widespread promotion as a new investment opportunity, has provided fertile ground for bad actors to take advantage of our Main Street investors. We embrace new technologies, but we also want investors to see what fraud looks like, so we built this educational site with many of the classic warning signs of fraud. Distributed ledger technology can add efficiency to the capital raising process, but promoters and issuers need to make sure they follow the securities laws. I encourage investors to do their diligence and ask questions.”
And it is also more than ironic how “on it” the SEC has been when it comes to crypto and all things ICO. Enforcement subpoenas are flying all around the United States in search of the next conviction. Ironic, because, of course, so little, comparatively, has
