It has been recently revealed that an Initial Coin Offering (ICO) fraudster case has made its way to the US court. In particular, the Founder of the proclaimed crypto projects, REcoin and Diamond Reserve Club, Maksim Zaslavskiy pleaded guilty for having committed fraud reports Decrypt Media.
The projects said fraudster was involved in raised a combined amount of $300,000 during an ICO that took place in July 2017. He claimed that the “cryptocurrency was backed by real estate,” adding that Diamond Reserve Club – special addition with benefits – was backed by diamonds. Unfortunately, neither claims were true as they were used to lure in investors.
Since Zaslavskiy’s plead in November 2018, his defense begged for “court of probation,” notes Decrypt Media, which is hilarious considering his actions and the fact that said crime normally has a maximum of five years jail time. This being said, the argument made is that the ICO Fraudster did not keep any of the money, as they were all returned.
However, the DOJ did not budge on their end as they think a total time of 30 to 37 months should be served. The case made here is that Zaslavskiy did not “willingly” return the funds, and that they probably were merely because of PayPal and WePay’s flagging of transactions as “potentially fraudulent”. This followed by US Securities and Exchange Commission (SEC) having successfully caught the fraudster were the true reasons.
Besides the fact that Zaslavskiy did not take complete responsibility for his actions, the DOJ noted that this brings awareness to other scammers as to what kind of consequences there will be moving forward. In addition, the DOJ shared that this case is an example for a, “greater need for general deterrence,” as the use of ICOs to raise funds continues to exist.