First Companies Are Charged Over ICO Fraud in America

The companies in question are REcoin and Diamond Reserve Club. Both of these companies belong to the same owner, Maksim Zaslavski, who promised investors huge returns.

REcoin’s ICO was meant to raise money for investment in real estate, while the other ICO was intended for buying expensive diamonds. REcoin ICO Raised $300,000 but Zaslavski told his investors that he raised between $2 and 4$ million. U.S. Securities and Exchange Commission (SEC) has charged the businessman for fraud and sad that Diamond Reserve Club hadn’t purchased any diamonds and didn’t have any plans to do so. The only way new companies can have huge margins and generate enormous returns is if they have a technological advantage, which these companies investing in diamonds and real estate didn’t have.

If something is too good to be true, it probably is.

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