By CCN: Bitcoin is a worthless sham that’s only useful for facilitating crime, and the public must be warned about the full spectrum of the crypto-sphere’s sleaziness. That’s the opinion of attorney John Reed Stark, a cybersecurity expert who worked for 20 years at the SEC’s enforcement division.
In a damning Law 360 column, Stark says the Securities and Exchange Commission will soon crack down on initial exchange offerings (IEO), which he called an “unregulated crypto-casino fundraising mutation.”
Moreover, Stark underscored that bitcoin is a con, and he advised investors to steer clear of it before they lose their money to predatory hucksters.
Stark: SEC Plans Regulatory Sweep of IEOs
Ex-SEC enforcement czar John Reed Stark said the SEC will hunt down startups who raise funds through IEOs, which he calls “crypto-casinos.” | Source: Shutterstock
Basically, Stark says IEOs are just another bogus investment scam being promoted by crypto shills to take advantage of unsuspecting suckers. However, he says the SEC is aware of the recent uptick in IEO transactions and will hunt them down.
“IEOs represent yet another blatant attempt to hijack a similar-sounding acronym — IPO — in an effort to lure investors seeking to get rich quick. However, just like ICOs, the IEO has not a single element in common with the IPO (other than the first and last letters of its acronym).”
Stark says unlike IPOs — which are regulated — ICOs and IEOs are virtually unregulated. Accordingly, he says they are an enticing medium for fraud, manipulation, insider trading, hacking, and “a broad range of chicanery.”