Thank you for sharing!

Your article was successfully shared with the contacts you provided.

This past year has seen an explosion of interest and investment in initial coin offerings (ICOs), a new method of raising capital in which startups issue digital tokens to investors, usually in exchange for virtual currency. According to Coinschedule, a website that tracks ICO statistics, there were 235 ICOs that raised over $3.7 billion in 2017. That represents a dramatic increase from 2016, in which there were only 46 ICOs that raised less than $100 million.

This rapid influx of capital, as well as the persistent hype of enormous profits available for the taking, has attracted fraudsters and scam artists to the ICO market. The promise of outsized returns has lured relatively unsophisticated investors, who are hoping to ride the surge of rising token values to turn a quick profit. These investors are easy prey for scammers, who can quickly draft a fraudulent “white paper” outlining a purported startup project, sprinkle it with impressive sounding tech jargon and buzz words like “blockchain,” and capitalize on the investors’ exuberant hopes for a large and speedy return on their investment to defraud them. At a conference in September 2017, SEC Co-Director of Enforcement Steven Peikin likened these fraudsters to “roaches” that “crawl out of the woodwork and try to scam money off of investors.”

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at customercare@alm.com

Lean Adviser Legal

Think Lean Daily Message

"To every extent possible, the improvement stage should include clients. They can improve their own internal processes. The entire issue of how GCs and their internal clients work together is an under considered topic. Then it goes further. Clients can improve and be better partners to their external law firms, and they can also highlight areas for external counsel to improve, and look for the commitment of law firms to do this. Law firms which do embrace improvement initiatives from clients lay foundations with them for the next project."

Learn More


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2018 ALM Media Properties, LLC. All Rights Reserved.