Maxim Zaslavsky, a “businessman” from new York, became the first entrepreneur in the United States to be sentenced to a real term on charges of organizing two fraudulent ICO projects.
Zaslavsky organized two deceptive schemes DRC and ReCoin, claiming that the tokens he sold were backed by diamonds and real estate. In fact, it turned out that neither the first nor the second in principle does not exist. Last year, the defendant admitted to securities fraud.
He also claimed that his ICO was led by real estate professionals. In the summer of 2017, more than a thousand investors invested in these projects, and the total amount of funds raised was at least $300,000. U.S. attorney for the Eastern district of new York Richard Donoghue said:
“Zaslavsky deceived investors in a way that is already familiar to many. He claimed that his project was revolutionary from a technological point of view, but this was not the case. The Prosecutor’s office will continue to work in this direction and pursue such scammers. It doesn’t matter if they use traditional securities or virtual currencies as a fundraising tool.”
The defense said that Zaslavsky wanted to return the money to investors, but his PayPal account was frozen due to suspicions about receiving transactions from stolen credit cards. Zaslavsky tried to justify himself in court, saying that he “never was a thief.”
“You are a thief. You took something that doesn’t belong to you in a fraudulent way. This is an unusual case for a number of reasons, as it involves new technologies. However, the methods of deception and blatant fraud are not new, they have long been known to us,” the judge replied.
Recall that Zaslavsky was arrested on November 1, 2017 on charges of securities fraud related to two ICOS, one of which was allegedly secured by real estate, and the other by diamonds. In September 2018, the US Federal court ruled that the criminal case against the DRC and ReCoin projects falls under the securities laws.