Steve Peikin has made his remarks regarding battling the fraudulent initial coin offerings on Dec 3, during his speech at Harvard Law School, where he dwelled on the amazing progress of the ICO marketplace.
According to Peikin, the sponsors of coin offerings are quite often situated outside of the US jurisdiction. Because of that, the international collaboration is crucial for the ability to scrutinize, and, in case of necessity, recommend the enforcement action to be brought in.
Peikin pointed that the coin offering marketplace has gone from merely being a concept to becoming an worldwide phenomenon over just a few years, with the statistics displaying that in 2016 ICOs managed to gather funds under the 100 million USD mark. Nevertheless, this year, the figure has surged to over 22 billion dollars, which accounts for a 22,000% increase. The sad part is that with such fast increase there has also been a corresponding growth in fraudulent activities.
Among some of the complications faced by the policymakers is the fact that the funds gathered via an ICO often derive from financiers both within and out of the US boundaries. Peikin pointed that the freshness of initial coin offerings, together with the hype around the blockchain innovations, turns them into an alluring vehicle for financiers. Sometimes, this can backfire on them, as they become totally ignorant regarding the risks connected with this yet immature asset class.