In Brooklyn, New York, programmer Maxim Zaslavskiy was convicted. This is the first case in this aspect that has no precedent, as this was the first case of a fraud case for the initial sale of tokens. It is worth noting the fact that Maxim Zaslavskiy received a sentence of imprisonment for a term of 18 months.
Law360 of November 18 states that the businessman was sentenced to prison after having participated in two fraudulent ICO operations. The essence of the matter is that both transactions were secured by non-existent in reality, collateral – diamonds, and real estate. In November last year, Zaslavsky pleaded guilty.
The programmer managed to crank up such a scam due to the fact that he convinced more than 1000 investors of the seriousness of their transaction and partnership. He assured investors that experienced real estate professionals are involved in the operations. The amount invested in a fake transaction is at least $ 300,000.
Richard P. Donoghue, the lawyer who participated in the hearing of this case, commented on what had happened as speaking with an old-fashioned fraudulent plan filed as something ultramodern. He also noted that it does not matter, whether it be a classic securities trading or a cryptocurrency exchange, does not, in any case, prevent human rights defenders from combating fraud in this area.
In turn, Mildred Whalen, lawyer, and advocate of Maxim Zaslavsky, at the hearing said that the accused programmer is trying to return investors their investments. Although, such actions can be called into question, for example, because PayPal froze all accounts that were involved in this case. Such action is explained by the fact that ICO payments included stolen / fraudulent credit cards.
Judge Raymond Dearie, put it in court with these words:
“You are a thief. You took something that did not belong to you under a false pretext.”
“This is an unprecedented and unusual case, if only because technology and cryptocurrency are involved, but lying and fraud are nothing new.”