NEW YORK (Reuters) – Maksim Zaslavskiy, a businessman based out of New-York, was arrested on 1st November. According to the claims made by the US Attorney’s Office of New York, Zaslavskiy was involved in two ICOs (initial coin offering).
He is alleged of scamming investors in the two ICOs which US SEC (Securities and exchange commission) has confirmed in their report.
Bridget Rohde, the US Attorney has affirmed that Zaslavskiy and his associates lured the investors into investing by promising fake returns. However, the truth was that none of the real estate or diamonds assets were supporting the investments in actual.
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.
According to the charge made on Zaslavskiy, one of the ICO’s they vouched as being backed by the real estate and the other was lied to be backed by diamonds.
The charges against Zaslavskiy were filed by the SEC in the late September 2017 which included two more related firms, the REcoin Group Foundation and the Diamond Reserve Club (DRC) World.
According to the charge, SEC alleged that the amount that was generated from the two ICOs was misrepresented Zaslavskiy.
At the same time, the SEC also succeeded in affirming a court order to freeze Zaslavskiy and the other two company’s asset.
The prosecutors have also claimed that the claimed assets never existed that supported the token sale.
The Office’s Business and Securities Fraud Section will be handling the case with Julia Nestor, Assistant US Attorney who is appointed as the in charge of the prosecution.
If the court proves him guilty, Zaslavskiy will have to face up to five years in jail and will have to pay fine as well.