Pay attention! This week Jonathan Lucas, the CEO of Fantasy Market an online adult entertainment marketplace, has been charged by U.S. Securities Exchange Commission with running a fraud ICO scheme. Except for Lucas, all the team members of the project were fake, according to the complaint, which listed many false statements made in promotions of this ICO.
In the six-week period from September 3 to October 16, 2017, ICO aimed to raise $25 million and release 125 million FMT tokens. Lucas announced to the press that project raised $2 million towards the $25 million, but in fact, Fantasy Market raised only about $63,000.
«The SEC said Lucas promoted the sale of FMTs by misleading prospective investors. He told the investors there had been a private pre-sale for accredited investors whereas it never happened. Lucas also said the token would be listed on major exchanges and the company had verified that its investors were accredited; neither of the claims is true.» — according to info on portal Coindesk. In the end, the company didn't build the product and all raised money went to marketing.
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