Cryptocurrencies

Our experienced cryptocurrencies lawyers work with investors in cryptocurrencies such as Bitcoin and in Initial Coin Offerings, or ICOs. We are investigating new cases and are in touch with investors.

We also work with cryptocurrency investors whose accounts have been hacked and their cryptocurrencies stolen.

ICOs have exploded over the past couple of years as a method for startups to raise capital. ICO investors make transfers of US dollars, Euros, Renminbi, or various cryptocurrencies such as Ether or Bitcoin to the ICO issuer in return for digital tokens.

These tokens are marketed by ICO issuers as representing the holder’s right of benefit or performance versus the issuer. As opposed to an IPO, or initial public offering, said tokens usually do not represent an ownership stake or rights to dividends in an entity.

In reality, most ICO tokens are likely securities, as they are offered as an investment and meet the Securities and Exchange Commission’s test for a security. The SEC has started going after unscrupulous promoters of ICOs and charging them with violations of the securities laws and regulations.

Worse, many ICOs have failed shortly after raising millions, or tens of millions, of dollars from investors, and have left their investors with little redress available. Some ICOs turned out to be outright fraudulent.

The ICO investment risks are quite high. ICOs offer considerably less investor protection than traditional securities markets, and conversely present larger opportunities for fraud and manipulation.

No ICOs have been registered with the SEC. The Commission has not approved listings and trading and exchange-traded products holding cryptocurrencies or other assets related to cryptocurrencies.

Investors should also note that cryptocurrency markets and ICOs span national borders and that large amounts of trading may transpire on platforms and systems outside of the U.S. Hence, your investment may be traveling around the globe without your knowledge.

Unscrupulous ICO promoters sometimes advertise huge gains and use celebrities, or radio and internet stars to promote their products and to lure investors.

If you believe you may have lost money in ICO or cryptocurrency schemes, or had your cryptocurrencies stolen from your account, contact us for a free, no-obligation consultation regarding your legal situation and potential recovery options, by phone at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this page.