In 2018, U.S. Securities and Exchange Commission (SEC) were enforcement against cryptocurrency companies. According to one of the leaders of the Commission, the international collaboration with other regulatory agencies will play an important role in complying with new SEC regulations.
According to Steven Peikin, co-director of the Division of Enforcement at the SEC, international cooperation will be an effective weapon in the fight against companies avoiding registration with the Commission and dealing with fraud. Peikin said about this on December 3 at the Harvard Law School’s Program on International Financial Systems (PIFS).
Peikin is head of a team of lawyers and accountants involved in the investigation of cases involving violations of the Federal securities laws of the United States. Thanks to the work of this Department, the Commission was able to prosecute music producer DJ Khaled and famous boxer Floyd Mayweather, who were both charged in the advertising of fraudulent ICO. In addition, the Department has helped the SEC to bring charges to Zachary Coburn, founder of the exchange EtherDelta, by operating an unregistered national securities exchange.
"Our investigation include the testimony of witnesses and evidence located in different countries. Therefore, the Commission's cooperation with international regulatory and law enforcement agencies is a critical element of our activities."
Peikin also focused on the types of violations of the securities laws in the ICOindustry. The first group includes the ICO, which meet all the criteria but are not registered with the SEC. In the second group are fraudulent ICO, the organizers of which create the hype around digital asset, thereby drawing money from investors.
At the end of 2017, the Agency received the right to freeze the assets of Dominic Lacroix and Sabrina Paradis-Royer ― founders PlexCorps which advertised and sold a token PlexCoin to unsuspecting investors. The founders of the project promised an incredible profit of 1354% in less than 29 days. Therefore, fraudsters managed to raise around $ 15 million investment.
"All the necessary information about the ICO provided us with colleagues from the canadian agency Authorite des marches financiers (AMF). These important evidence, transferred from Canada, the court relied in ruling against the defendants".
Peikin also noted that the Agency will continue cooperation with its partners worldwide in the framework of investigations of the actual ICO. His argument coincides with the views expressed at the G20 summit held on 30 November in Buenos Aires. Among other topics discussed by world leaders at the event, was "the need to regulate crypto-assets to combat money laundering and the financing of terrorism in line with FATF standards".