November 19, 2018 Comments (0) Blog, Current Investigations

Initial Coin Offering (ICO) – Securities Investigation

Initial Coin Offering

Investors may have claims – Initial Coin Offering (ICO)

Are you concerned about your investment losses in an initial coin offering (ICO)? If so, the securities attorneys at The White Law Group may be able to help you recover your losses.

Initial coin offerings (ICOs) are a relatively new method of raising capital, and entail an exchange of investment capital for digital coins or tokens that afford certain rights to the holder.  An ICO promoter may raise capital to develop a digital platform, software, or other projects.

Many ICO promoters have pronounced that the coins or tokens sold in the offering do not qualify as securities.  The Securities and Exchange Commission (SEC), however, has determined that most coins or tokens sold through ICOs do in fact qualify as securities.

Securities must be registered with the SEC unless they are subject to a valid exemption from registration.  The registration provisions of the Securities Act contemplate that the offer or sale of securities to the public must be accompanied by the full and fair disclosure afforded by registration with the SEC and delivery of a prospectus with information sufficient to allow investors to make informed investment decisions.

Registration entails disclosure of detailed information about the issuer’s financial condition, the identity and background of management, and the price and amount of securities to be offered.  Registration is indeed central to the Securities Act’s comprehensive scheme for protecting public investors.

Free Consultation with a Securities Attorney

If you are concerned about your investment losses in an initial coin offering, the securities attorneys at The White Law Group may be able to help you.  For a free consultation with a securities attorney, please call the offices at 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

For more information on The White Law Group, visit www.WhiteSecuritiesLaw.com.