A federal judge in Brooklyn has dismissed a challenge to federal prosecutors’ use of securities laws to go after alleged fraud in the cryptocurrency market Tuesday, bolstering the government’s use of the Depression-era laws to go after 21st century digital currency violations.

Maksim Zaslavskiy was arrested in November 2017 after the U.S. Attorney’s Office for the Eastern District of New York charged him with violating securities laws in connection with two virtual currency investment schemes. Zaslavskiy allegedly lied about the underlying assets when he issued initial coin offerings for two investment ventures, one related to real estate and the other diamonds, according to federal prosecutors.

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