SEC Charges Founder of $63,000 Fake Adult Site ICO

Wilfred Michael 

Wilfred Michael

News reporter

24 September 2019,
08:28
SEC Charges Founder of $63,000 Fake Adult Site ICO

The U.S Securities and Exchange Commission (SEC) has added Fantasy Market founder, Jonathan Lucas to its list of crypto-related crime offenders, according to a press release published Monday.

The SEC announced that it filed charges against Lucas for conducting a fraudulent initial coin offering (ICO) for a purported online adult entertainment marketplace and raising $63,000 in the process.

Starting from August 2017, Lucas allegedly published a whitepaper in which he claimed that a working- beta version of the supposed adult entertainment website was already in existence, even though this was not true.

The SEC also alleged that Lucas misleads investors by misrepresenting his expertise and presenting a fictitious management team, in a bid to reinforce the viability of his fraudulent scheme.

The release, though, mentioned that Lucas returned raised funds to investors after garnering media attention over investor complaints.

However, that move was not enough to save him from attracting the ire of the SEC who has now charged him with violating anti-fraud provisions stipulated by the regulators.

His punishment which is now pending court approval as per the SEC announcement is a $15,000 civil penalty and a combined ten-year ban from engaging in unregistered securities offerings.

Meanwhile, the charges leveled against Lucas is the second enforcement action being brought on a crypto-related project by the SEC this September. 

In the other incident, we reported that the securities watchdog sued ICOBox for its $14 million ICO, and also for facilitating a $650 million fundraising for other projects which are now “virtually worthless.”

 

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