AM-03 - Cryptocurrency

Date/Time: 
10/10/2018 - 11:00am to 10/10/2018 - 12:15pm
Room: 
Calusa EFGH

Cryptoassets have been described by some as a disruptive means of fundraising, in many cases displacing venture and conventional A round financing of start-up ventures. However, the underlying technology of these systems is often poorly understood, which opens up the potential for considerable investor fraud and abuse. While software developers may not understand securities laws, there is little dispute that anyone using crypto-tokens for fundraising purposes must comply with SEC regulations. Surprisingly, regulatory input on this issue has further muddied, rather than clarified matters. This presentation will discuss the origins and basics of the blockchain technology that forms the core technology behind Bitcoin, newer cryptocurrencies, and most token sales, and explain the way that the technology is used as a vehicle to offer investment products. The session will also highlight strategies used by issuers to attempt to comply with SEC, DOJ and state securities laws, discuss common issues including fraud, dispute resolution, unique products being sold by token sale, international/jurisdictional complications, and other new and emerging problems associated with token issuances.