Thailand SEC Releases Warning Statement On ICOs

  • The Securities and Exchange Commission of Thailand recently released a report about the legality of certain initial coin offerings (ICOs) and other cryptocurrencies.
  • In it, it warns that some of them have not met regulatory standards and may put investors at risk.

Thailand’s Securities and Exchange Commission (SEC) has released a warning to the public about investing in initial coin offerings (ICOs). The report explains that some of the coins being offered did not receive SEC approval, which means that investing in them could carry serious risk.

Additionally, the Thai SEC detailed that the tokens in question have not had their smart contracts audited by official ICO portals, increasing the risk of investment, according to local news outlet the Bangkok Post.

The report identified nine digital tokens and ICOs that were not authorized by the SEC, including: Every Coin, Orientum Coin (ORT Coin), OneCoin and OFC Coin, Tripxchain Coin (TXC Coin), TUC Coin, G2S Expert ICO, Singhcom Enterprise ICO, Adventure hostel Bangkok ICO and Kidstocurrency ICO.

 Many of these coins have been promoted on social media platforms like Facebook and YouTube, which set off red flags for the Thai SEC. The regulator also warned that some of these cryptocurrencies are operated like Ponzi schemes, encouraging users to sell the cryptocurrency to their friends and family in exchange for referral bonuses.

Although not explicitly named, this could be in reference to OneCoin. OneCoin has previously been shut down by the Chinese government. The organization, widely believed to be a Ponzi scheme, has received scrutiny online. Operated as a “private blockchain,” some see it as little more than a scheme, especially after countries like China, India, and Italy issue warnings about OneCoin.

There are opportunists who persuade individuals to invest in digital assets by assuring investment returns generated from digital tokens that are structured like pyramid schemes.

SEC of Thailand

The regulator’s move represents the continuing involvement of federal governments in the cryptocurrency space. The ICO boom of 2017 put the fundraising method under regulatory scrutiny.

This new financial instrument doesn’t fit under any one regulatory body, and confuses many regulatory bodies. Despite these challenges, governments are stepping in to police the space. Earlier this month (October 19, 2018), the United States’ SEC announced that it would be launching a new “Finhub” division to engage with ICO startups.

2,000 Person Class Action Suit Filed Against Bitcoin Conference Founder

Michael LaVere
  • Loss attorney David Silver has filed a 2,000 person class action suit against the founder of the "Massive Adoption: Memphis" cryptocurrency conference.
  • Defendant Jacob Kostecki has yet to refund ticket sales after the event was canceled on January 31. 

A class-action lawsuit has been filed against the founder of the “Massive Adoption” conference for bitcoin following his refusal to refund ticket sales. 

According to the initial complaint filed on May 7, Ashley Gentry was named as the lead plaintiff in a 2,000 person lawsuit against Colorado native Jacob Kostecki, creator of the “Massive Adoption in Memphis: Blockchain and Digital Assets” event.

The cryptocurrency conference was originally scheduled to be held in November 2019, before being rescheduled to February 2020. The event was subsequently called off on January 31. 

The lawsuit, filed in the District of Colorado by securities fraud and investment loss attorney David Silver, claims Kostecki promised event-goers a refund on tickets and packages within six months. 

The suit, referencing Kostecki’s promises, reads, 

Promises are like crying babies in a theater: they should be carried out at once.

Silver accused Kostecki of causing “significant financial loss” to ticketholders after failing to carry out his promise of a refund.  The class-action filing demands compensation for damages due to lost airfares, attorney fees and other applicable costs. 

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