SEC Launches Fake ICO to Educate People on Fraud

US Government Launches Scam Crypto Site

The website, HoweyCoins.com, uses numerous same sales tactics used by fraudulent ICOs. Generally, if something passes the Howey test, and is therefore considered a security, it is subject to SEC regulation. Named after the legal test for securities, the Swiftian token purports to be another improbable blockchain project for the travel industry.

The Securities and Exchange Commission on Wednesday made like an excitable late-night infomercial announcer as it amped up its battle to warn investors against possible too-good-to-be-true crypto-asset come-ons. However, the United States agency is not content with dealing with fraudulent ICOs after the fact and instead hopes to educate investors to prevent such scams being successful in the first place. The SEC, of course, hasn't completely banned ICOs across the country, although they do believe the industry is filled with scam opportunities. The end result is a website that educates users about the dangers of ICOs in a creative way.

The ICO website links back to a warning from US SEC.

Clicking one of the many "Buy Coins Now!" buttons on the mock site directs visitors not to an opportunity to buy but to investor education tools.

SEC is now pursuing a dozen companies for allegedly conducting ICO exit scams. In January 2018, the agency stopped a fast-moving ICO that was seeking to raise an incredible $1 billion from thousands of investors in an effort to create "the world's first decentralized cryptocurrency bank".

Study shows Pop Music is getting sadder but more danceable?
More recent songs with a low happiness index included Sam Smith's " Stay with Me " and "Whispers" by Passenger , both from 2014. The researchers emphasize that they were looking for the trends in the acoustic properties and the moods describing the sounds.

James Ransone will play adult Eddie in 'It: Chapter 2'
Variety is reporting that Power co-star Andy Bean (pictured left above) has lined up the role of Stanley Uris in It: Chapter 2 . It's fitting because Wyatt Oleff was involved in one of the first movie's creepier sequences as young Stanley.

Two Sudbury beaches can fly the Blue Flag
Shanklin, Seagrove and Springvale beaches have today (Thursday) been awarded Seaside Awards, but Sandown does not appear on the list.

What follows is a long list of classic "red flags" in scam projects.

"Fraudsters can quickly build an attractive website and load it up with convoluted jargon to lure investors into phony deals", said Donley. "We embrace new technologies, but we also want investors to see what fraud looks like, so we built this educational site with numerous classic warning signs of fraud". SEC created a bogus hedge fund offering in 2003, called "GRDI Select LP", the name is a reference to greedy.

Taking a look at the ICO's website, the campaign has all the trimmings of a sketchy coin offering. There's a massive countdown timer to the pre-ICO, for example. The ICO presents investors with a lifetime chance of making money from "sun-soaked beaches and crystal-clear waters".

"HoweyCoin is the newest and only coin offering that captures the magic of coin trading profits AND the excitement and guaranteed returns of the travel industry", explains the website.

HoweyCoins is part of the SEC's effort to combat an explosion of scams and securities fraud associated with cryptocurrencies. The SEC says many ICOs are probably fraudulent, with bad guys evading investor protections and selling digital tokens that turn out to be worthless for the buyers.

Related:

Comments

Latest news

Oil drops as demand shows signs of weakening
Here is a look at how share prices for two blue-chip stocks and two exchange traded funds reacted to this latest report . Gasoline and distillate stocks were expected to have fallen by 2 million barrels and 1.3 million barrels, respectively.

PUBG Mobile Gets Miramar Desert Map Before Xbox One
Twitch launched this new set of custom filters earlier, and they're available to everyone watching PUBG streams . Update 0.5.0 has added a new map, with the desert themed Miramar now available to play for mobile users.

State may gamble on sports betting
For now, New Jersey , and possibly DE , will likely be the only options for new sports betting operations in the coming weeks. Virginia law now considers gambling illegal, part of a code section titled "Crimes Involving Morals and Decency".

Fresno Area Cyclists Take Ride of Silence
OH law states bicyclists have the same rights and responsibilities as other vehicles on roadways. More information on the Ride of Silence can be found here.

Jack Dorsey graces NYC's Blockchain Week to talk up magic internet money
He enlisted the help of his engineer Mike Brock on the Tuesday of the event, with only a few days left. We made a decision to dedicate Mike [the engineer] to building Bitcoin within Square Cash ".

Griezmann speaks on Atletico Madrid future after Europa League final brace
Griezmann slotting coolly into the bottom left corner in the 21st minute after being set up by midfielder Gabi's first-time pass. The Cameroonian's attempt at a touch was very bad , and Gabi pounced on the loose ball, sending Griezmann through to finish.

Chrissy Teigen and John Legend have welcomed a baby boy
The Sports Illustrated model announced she was pregnant with the couple's second child last November. And, of course, congrats to John and Chrissy on their growing family!

Braun scratched from Brewers' lineup vs D-backs
Milwaukee starter Jhoulys Chacin gave up one run on two hits in seven innings, with seven strikeouts and two walks. After Jimmie Sherfy walked the bases loaded, Domingo Santana's fly ball to right made it 4-2.

Nation's most restrictive abortion law challenged in Iowa
Pro-life advocates are calling on President Donald Trump to use regulations to rollback taxpayer subsidies to Planned Parenthood. Last year, they approved a 20-week abortion ban and required women to wait three days before they could have an abortion.

Portia De Rossi says she has quit acting
However, she is best known for playing Lindsay Bluth Funke on the award-winning TV comedy Arrested Development . De Rossi also went on to explain more about the art-based venture that's pulled her away from Hollywood.

LeBron, Harden, and Davis finalists for MVP
The finalists were based on voting results from a global panel of sportswriters and broadcasters. The 28-year-old star was also third in the league in assists (8.8) and seventh in steals (1.75).

US Surgeon General helps passenger with medical emergency on flight to Jackson
The doctor said he was proud to represent his agency, the United States Public Health Service Commissioned Corps. But ultimately, Adams said he was just doing his duty and was "glad to be able to assist".

OnePlus 6 India launch in Mumbai at 3 PM today
The OnePlus 6 sports a 16-megapixel front camera with a Sony IMX371 sensor, 1-micron pixels, f/2.0 aperture, and EIS. RAM: 6GB LPDDR4X RAM with 64GB (UFS 2.1) storage , 8GB LPDDR4X RAM with 128GB (UFS 2.1) / 256GB (UFS 2.1) storage .

Cisco Systems (CSCO) Expected to Post Quarterly Sales of $12.42 Billion
The Street was, on average, projecting revenue of $12.43 billion, and earnings per share of 65 cents, excluding some costs. The fund owned 18,005 shares of the network equipment provider's stock after selling 29,332 shares during the quarter.

Tesla driver in Utah 'Autopilot' crash had hands off wheel: Tesla
This photo provided by Tesla shows a 2017 Tesla Model 3, a vehicle that has a semiautonomous driving system called Autopilot. Last week, NHTSA also said it would probe a May 8 Tesla accident in Florida that killed two teenagers and injured another.

Other news