In its first cases, the SEC has brought violations against Floyd Mayweather Jr. and music producer DJ Khaled involving ICO promotion. The SEC noted that using celebrity endorsers was a crucial part of the ICO issuers’ promotional strategy.
According to the recent ruling made by a US federal judge, criminal cases related to shady ICOs officially fall under securities laws.
CFTC tells investors that digital tokens promoted by businesses may either be categorized as securities, derivatives, and commodities, depending on how they are structured.
As a part of the agency’s months-long probe into the nascent crypto fundraising mechanism, SEC has subpoenaed the online retailer Overstock and requested for additional information about the company’s ongoing $250 million ICO for its tZero alternative trading system.