A businessman from Brooklyn whose 2017 ICO schemes turned into an early target of SEC enforcement was sentenced on Monday with 18 months in federal prison for plotting to commit securities fraud.
The case spun around Maksim Zaslavskiy’s two fake investment schemes.
During the 2017 ICO blast, Zaslavskiy sold investors asset-backed tokens for two organizations – Diamond Reserve Club World and REcoin Group Foundation. However, the underlying assets of the tokens didn’t exist.
Rather, Zaslavskiy raised around $300,000 in real estate and diamond investments that did not materialize.
The SEC accused him of duping investors in September 2017. Last November, he pleaded guilty in the wake of trying and neglecting to get the case dismissed over what his legal advisors called “vague” securities law administering his case.
“Zaslavskiy committed an old-fashioned fraud camouflaged as cutting-edge technology,” U.S. Attorney Richard P. Donoghue stated.
The Eastern District of New York “will continue to investigate and prosecute those who defraud investors, whether involving traditional securities or virtual currency,” Donoghue stated.