ARTICLE
25 May 2018

SEC Launches Mock Scam Website To Highlight Risks Of ICOs

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Herbert Smith Freehills Kramer LLP

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In response to the rapid growth of the ICO market and the accompanying rise of related scams and frauds, the SEC launched HoweyCoins.com, a mock ICO website touting "an all too good to be true investment opportunity."
United States Criminal Law
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In response to the rapid growth of the ICO market and the accompanying rise of related scams and frauds, the SEC launched HoweyCoins.com, a mock ICO website touting "an all too good to be true investment opportunity." The website features several of the enticements that are common to fraudulent ICOs, including a white paper with a complicated and vague explanation of the investment, promises of guaranteed returns and a countdown clock "that shows time is quickly running out on the deal of a lifetime." Clicking on the "Buy Coins Now" icon takes users to a page offering investor education tools and tips from the SEC and other financial regulators.

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