In more recent times, governments around the world have been cracking down on scam initial coin offerings.
These are just a handful of initial coin offerings which have been shut down by governments around the globe.
- Black Cell:
The Hong Kong Securities and Futures Commission moved to shut down the Black Cell ICO. Black Cell claimed to be raising funds for a mobile app called Krops. However, the SFC wasn’t happy with the setup and ordered that all funds be returned to investors.
Munchee is another initial coin offering which was subject to parts of the SEC crackdown on initial coin offerings.
Munchee aimed to raise fifteen million dollars selling tokens which it claimed would be used as part of the “Munchee ecosystem”. However, the Securities and Exchange Commission ruled that the tokens were a security which was masquerading as a utility.
The U.S Securities and Exchange Commission took action to shut down the AriseBank initial coin offering which had been using celebrities such as the boxer Evander Holyfield to tempt investors to hand over their funds. It is believed the initial coin offering managed to raise around $400 million before the Securities and Exchange Commission halted it.
The Securities and Exchange Commission closed down Prostarr, an Ethereum-based application which was designed to allow YouTube users to easily receive donations from viewers and followers. In August 2017, the SEC made a request for further information about the project. This request resulted in the initial coin offering being closed down. The funds raised were returned to investors.
The PlexCorps initial coin offering claimed that investors would see a return of one thousand percent on their investment within thirty days. The team also refused to provide details of the “experts” who were working on the initial coin offering. In December of last year, the U.S SEC moved to shut down the initial coin offering.