SEC Director Against ICO Scamsters

SEC Director Against ICO Scamsters

US Securities and Exchange Commission (SEC) Co-Director Steven Peikin reportedly excoriated initial coin offering (ICO) scamsters during a public disc

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US Securities and Exchange Commission (SEC) Co-Director Steven Peikin reportedly excoriated initial coin offering (ICO) scamsters during a public discussion about cyber crime and the present technological landscape.

Cryptocoinnews.com repoted on the panel that took place at New York University on September 5. At the conference, chairman Jay Clayton said that American investors do not appreciate the immense systematic risks that cyber crime poses, as cryptocoinnews.com noted.

“I am not comfortable that the American investing public understands the substantial risks that we face systemically from cyber issues“, as he said as quoted by The New York Times (nytimes.com).

“I’d like to see better disclosure around that.”, he added.

A recent study from blockchain-tracing company Chainanalysis stated that the cyber criminals generated more than $150 million in revenues.

According to Chainalysis estimated, 10% of all funds marked for ICO investment are stolen by cyber criminals.

Co-director Steven Peikin called the ICO scamsters “roaches”:

“As with any kind of newsworthy event, roaches kind of crawl out of the woodwork and try to scam money off of investors.”, as he commented as quoted by cryptocoinnews.com.

These comments raised fears in the community that SEC is preparing to ban ICOs. The latter happened in China, where the People`s Bank of China (PBoC) issued a ban on ICOs.

It is to be seen whether these fears are overblown or not.

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