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If they make claims in their ICO-related documents that the coin is not a security when it is in fact a security, then they are committing securities fraud. You
by uiri 9y ago
If they make claims in their ICO-related documents that the coin is not a security when it is in fact a security, then they are committing securities fraud. You're right that if they straight up said "this is an unregistered securities offering", it would not be fraudulent.
- kenbaylor 9y agoThat would be correct if the law was settled in this area. It is not. Generally you also need to prove intent for fraud, and if the law is not settled, it will be hard to prove fraudulent intent.
- collinvine 9y agoOne argument here is that the law is settled. If it's securities law that applies, as the SEC has started, then it's been settled for over 80 years.