In the crypto space, it’s considered normal to see ICO operators scamming its own investors. It’s still the wild wild west where people put their BTC, ETH, or stablecoins in exchange for new tokens issued by the ICO operators. Unfortunately, many people still invested their hard-earned cryptocurrencies for these ICO tokens, because they are lulled by the high return promises.
The operators behind BCT tokens, which claimed that the company’s technology was being utilized by twenty hedge funds, were charged by the SEC (US Securities and Exchange Commission) due to its fraud and deceptive activities.
The SEC believes that the company is scamming its ICO investors and making false claims about its technology. Not only that, but the company behind BCT tokens is also charged for selling unregistered securities because they received some funds from the US investors in the ICO session.
The ICO of BCT tokens itself successfully collected $30 million before people found out it was only a scam. The proceeding case itself is currently being halted to prevent Pardo and Manor (the operators of the ICO) from getting material through civil discovery.
This case against BCT is nothing new. There are plenty of other ICOs that have been charged by SEC and regulators all around the world due to their deceptive claims and scams.
Source: CoinTelegraph
