Late last week, the Securities and Exchange Commission (SEC)
charged Mr. Boaz Manor, Ms. Edith Pardo and two related entities,
CG Blockchain Inc. and BCT Inc. SEZC, for violating federal
securities laws when raising more than $30 million from hundreds of
investors in a fraudulent initial coin offering (ICO). The SEC
alleges that the defendants falsely claimed to have 20 hedge funds
testing their technology to record transactions on a blockchain,
when, in fact, the defendants only sent a prototype to a dozen
funds, none of which used or paid for it. In addition, the
complaint describes how Manor, a convicted criminal, hid his
identity and criminal past from investors by changing his physical
appearance and using an alias. The U.S. Attorney's Office
announced criminal charges against Manor and Pardo in a parallel
action.
