S. E.C Probe of ICOs Reflects Long-Running Concerns

Investing.com - Reports that the Securities and Exchange Commission's investigation into cryptocurrencies is focusing on initial coin offerings should come as no surprise to the coin community.Not only has the SEC taken a number of actions against firms involved in ICOs, the regulator has made them a focus of its efforts to protect investors from fraud. SEC Chairman Jay Clayton was extremely critical of ICOs in his testimony to Congress a month ago, declaring that many were illegal because they failed to follow applicable securities laws.The SEC also singled out ICOs as one of its examination priorities in 2018.The agency has already sued companies involved in ICOS. The most prominent case involves Arise Bank The SEC alleges the company committed fraud in an attempt to raise $1 billion.ICOs have also drawn unwanted attention because of their high rate of failure and susceptibility to cybercriminals.A recent survey by Bircoin.com found that almost half of the 902 ICOs in the U.S. last year failed.And an Ernst & Young report concluded that 10% of the money raised in 370 global ICOs last year was lost or stolen by hackers.