Bitcoin, Crypto currency, Blockchain

Regulatory authority of the SEC to submit Fake ICO – warning to investors

e037078a114f3492c59f99b040395750 - Regulatory authority of the SEC to submit Fake ICO – warning to investors

In the past we have reported many times already that it is one of the top priorities of the American regulatory Agency, the Securities and Exchanges (SEC) is to protect investors from fraudulent Initial Coin Offerings (ICOs). For this purpose, the SEC went an unusual way and has set up a Fake ICO under the name of HoweyCoins.

The Fake ICO aims to lead potential investors how easy it is to publish a website, a Whitepaper, and numerous promises for the solution of the “big” problems in today’s society and economy.

The aim of the campaign is to teach investors how to recognize ICO scams. In particular, investors are warning signs to recognize, such as promises of high yields, a prominent Supporter and false claims better. The SEC established a web site, HoweyCoins.com a, which mimics a fraudulent ICO to investors to inform about what you need to look out before you invest in an ICO.

HoweyCoins, the SEC announced its FakeCoin, to be “an exciting opportunity to combine the Blockchain and luxury travel. The Initial Coin Offering huge profits to be possible.

The HoweyCoin website even offers a fake white paper, which summarized the alleged Details of HoweyCoins on 8 pages. In reality, the formulations are phrases but mostly in each other X-number of white papers also. The SEC has even gone so far as to create fake celebrity Twitter Accounts that supported the HoweyCoin.

Those on the “buy Now” Button, you will be greeted with a warning, and led instead to the Tools and tips of the investor, training of the SEC and other financial regulatory authorities.

The campaign took place on Twitter has been well received. In particular, the SEC has been praised for its inventiveness. Even the Name of the Coins is a clever allusion to the Howey Test, which is used for the determination of whether an investment product is a security that must be registered with the SEC.

In a groundbreaking U.S. Supreme Court ruling of 1946, SEC against WJ Howey co., the court decided that a transaction is an investment contract or a security, if a Person invests their money in a common enterprise and profits not expected, due to the efforts of the promoter or of any third state.

In the official press release, the SEC (freely translated) says:

The SEC was able to HoweyCoins-site within the shortest possible time internally build up, which shows how easy it is for someone to create a possibility of Fraud. Remember, a free and easy way to protect your money, inform yourself about the company and the people behind the Coins. All this and more you can do to the Investor Education Website of the SEC.

In recent months, the SEC has made it clear that they would like to classify crypto currencies, preferably in the securities. In particular, Ethereum and Ripple were, as reported in the headlines. In this respect, reference is certainly also a further note on the current way of looking at ICOs, in General.

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