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Zaslavskiy arrested for ICO frauds

01 November 2017 21:00, UTC

Maxim Zaslavskiy is an entrepreneur called by some media “a Soviet American”, this might possibly mean that he immigrated to the United States when the Soviet Union still existed. Whatever the case is, it’s not his uncertain degree of Russianness that attracted the United States Securities and Exchange Commission, it was his false information about two ICOs he led.

As our regular readers might remember, a month ago, an entity called Diamond Reserve Club World (DRC World) and the REcoin Group Foundation were both called fraud schemes and found violating the United States laws on securities. As recently published documents suggest, one of the ICOs was promoted as backed by diamonds and another one — by the real estate assets, while in both cases it was not actually true. "As alleged, Zaslavskiy and his associates enticed investors by promising returns using novel ICOs even though Zaslavskiy knew that no real estate or diamonds were actually backing the investments," told Acting United States Attorney.

And, as if that was not enough, Zaslavskiy lied about the amounts of sums he managed to attract during those two initial coin offerings, which the United States authorities also find unacceptable. Full complaint can be read on Scribd.

During the month between the initial accusations and arrest, Zaslavskiy boasted to the Russian media that he managed to find good attorneys and claimed all accusations by SEC were false.