US Judge Rules ICO’s are Covered by Securities Law

A federal judge in Brooklyn, New York, has just denied an appeal to dismiss a case against a person charged for promoting cryptocurrencies backed by real estate and diamond investments.  In a report by Bloomberg today Sept 11, federal prosecutors said that these investments never really existed.

U.S. District Judge Raymond Dearie sided with federal prosecutors that initial coin offerings or ICO’s is considered a security for purposes of criminal law.  With this development, government prosecutors won a crucial legal victory in what seems to be the first criminal case of its kind as the US Judge ruled that ICO’s are governed by the US securities laws.