ICO organizer sued for alleged securities violations

North America United States

A resident of Massachusetts and an organizer of an initial coin offering (ICO) has been charged with violating securities and business laws by the states Securities Division.

The plaintiff, Kirill Bensonoff and his company, Caviar have, allegedly, offered unregistered securities in the form of “caviar” tokens. The plaintiff then planned to use the gathered funds to “flip” properties and continue investing in cryptocurrencies.

According to the filing, Caviar tokens were a “textbook example of a conventional security” even though the firm claimed they weren’t. Furthermore, despite the fact that the company’s website noted that the tokens would be available only to non-us residents, a least two American residents purchased “Caviar”.

About the author

Maciek Klimowicz

Maciek Klimowicz

A seasoned writer and editor with 10 years of experience in a variety of print and online media. Recognizing the transformative potential of the blockchain technology, Maciek has now put his pen to work to explore the key issues of this fast-evolving sector. Contact him on [email protected].

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