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Soliciting investment from non-accredited investors is illegal. I learned this from an attorney who specializes in securitization when I was exploring doing a c
by k33n 7y ago
Soliciting investment from non-accredited investors is illegal. I learned this from an attorney who specializes in securitization when I was exploring doing a crypto business. It was also explained to me that local angel investing groups exist pretty much for this reason. They create a semi-private network of accredited investors which can be used by the local community to solicit capital in a legal way.
- mardifoufs 7y agoYou don't have to "actively" seek investment from non accredited investors for it to be illegal. So a crypto currency could still absolutely be subject to action from the SEC even if they only had a "invest now" option on their website without promoting it . It's just that the SEC doesn't care as much and focuses more on the big fish. Still, passively selling illegal securities is still illegal :) Fig is legal because of a recent crowdfunding law that made it possible to buy equity while funding a project. I think the website was created right after the law passed too, but maybe my memory is fuzzy here