SEC to Monitor Future ICOs for Possible Violations
The SEC announced on Monday that they will be putting together a cyber crime unit division with one of their objectives being to target “violations involving distributed ledger technology and initial coin offerings.”
The cyber unit will focus their efforts on substantial cyber related crimes such as:
- Manipulation of markets with false information spread via social networks or electronic media
- Obtaining nonpublic or proprietary material information via hacking
- Distributed ledger technology (i.e. blockchain) and initial coin offerings (ICOs)
- Dark web misconduct
- Retail brokerage account intrusions and hacking
- Cyber related threats to critical market infrastructure and trading platforms
Recent ICOs and other thinly traded alt coins are beginning to look eerily familiar to penny stock pump and dump schemes of the past. If you recall when the internet first became popular, online pump and dump schemes were rife until the SEC started monitoring and cracking down.
We are now finally entering that stage with ICOs and the cryptocurrency space. This is a positive step forward and further legitimates cryptocurrency as a valid security. Kudos SEC!