An initial coin offering (ICO) is a fundraising method in which a cryptocurrency startup issues digital tokens in exchange for established cryptocurrencies or other forms of funding. This is similar to an initial public offering for stocks, but for a decentralized digital asset. While offering potential high returns, ICOs can also carry a significant risk of fraud.
At Silver Law Group, an ICO fraud lawyer can help you recover lost assets from cryptocurrency scams by pursuing legal action against the fraudulent parties. Our securities class action attorneys have a deep understanding of blockchain technology, as well as complex securities laws. We can investigate, litigate, and negotiate this type of securities fraud on your behalf. We work on a contingency basis, so if we don’t win or settle your case, you pay us nothing.
ICO fraud occurs when scammers promote a fake or underdeveloped cryptocurrency project and take your money, often through deceptive means, such as false promises of high returns or misleading marketing. Fraudsters create a convincing illusion of a legitimate and highly profitable venture, then either disappear with the funds or fail to deliver on their promises, leaving you with worthless tokens.
Scammers can use various tactics to perpetrate cryptocurrency fraud.
This is one of the most common and devastating forms of digital asset fraud. The project founders collect your funds and then vanish without a trace. You receive initial updates and reassurances, but eventually, communication ceases entirely.
A whitepaper outlines a project’s vision, technology, and implementation plan. Fraudulent ICOs often publish a plagiarized or fabricated whitepaper filled with technical jargon and unrealistic goals to appear legitimate.
Legitimate projects are transparent about the people behind them. Scammers will often hide their identities using pseudonyms, stock photos, or by copying the profiles of real people from professional networks.
Scammers inflate a token’s price through deceptive promotions, such as using social media influencers, disseminating fake news, and making exaggerated claims. Once the token price peaks due to increased demand, the insiders quickly sell their large holdings in a Pump-and-Dump, causing the coin price to crash and leaving you with a significant loss.
Instead of creating a new fraudulent project, scammers will impersonate a legitimate, popular ICO. They create fake websites or social media accounts that appear identical to the real ones, tricking you into sending funds to a fraudulent wallet address.
If you are the victim of a cryptocurrency scam, do not hesitate to contact an ICO fraud attorney at Silver Law Group for legal support and to provide detailed information about your options to pursue a claim.
If you are seeking to recover losses from digital asset fraud, several legal avenues could be available, so you should consult with a lawyer as soon as possible. If numerous investors were affected by the same fraudulent ICO, a class-action lawsuit can enable them to combine their resources and collectively sue the perpetrators.
This can be an effective way to hold fraudulent issuers and their promoters accountable for selling unregistered securities and for making false or misleading statements. If a cryptocurrency exchange, broker, or celebrity promoter was involved in the fraudulent scheme, they may also be liable. You can file lawsuits against all these parties for their roles in marketing and facilitating the sale of unregistered securities.
Our lawyers can help you recover losses from an initial coin offering that contained elements of fraud. We can pursue legal actions against perpetrators and guide you through government reporting and asset recovery processes – and our past case results show our capabilities. If you believe you’ve lost money to ICO fraud, contact us today to request your free and confidential case evaluation.
