An IOSG analysis argues that the U.S. Securities and Exchange Commission’s proposed Regulation Crypto Assets, or Reg CA, should not be read as the trigger for an “ICO 2.0” cycle. The proposal, released by the SEC on Aug. 18 and published in the Federal Register on Aug. 21, remains in the public comment stage through Oct. 20. In IOSG’s view, the rule’s biggest effect would be on the large pool of existing tokens whose legal status has never been formally resolved, rather than on new issuance. The analysis points to the structure of the proposal itself. Rule 200 would allow small token offerings to proceed after filing a Form NOR, but only up to a cumulative $5 million over four years, with one-time use and a broad definition of covered transactions that can include airdrops and network incentives. Rule 300 offers larger fundraising channels at up to $20 million or $75 million per 12 months, but only for issuers that meet demanding U.S. entity, management, asset, and operational tests. IOSG says those limits are too narrow to support a broad reopening of the primary token market. By contrast, Rule 400 creates a path for a token to stop being treated as a security once the issuer completes or permanently halts all promised core managerial efforts and files a Form TR. IOSG argues that this “graduation” mechanism is the center of gravity in Reg CA. The paper also notes that Rule 500, which would preempt parts of state blue-sky law for covered transactions, is both one of the proposal’s most consequential features and one of the sections most vulnerable to pushback before any final rule arrives, likely no earlier than 2027.

Federal prosecutors in the Southern District of New York have charged Taj Tarsha, the 34-year-old founder of NFT marketplace Few and Far, with securities fraud and wire fraud. Prosecutors allege Tarsha raised more than $10 million from at least 67 investors in 2022 by selling rights to 95 million FAR tokens through Simple Agreements for Future Tokens, or SAFTs. Instead of using the money to build a decentralized NFT marketplace, authorities say he diverted much of it to online gambling, speculative cryptocurrency purchases, nearly $1 million in bonuses, an inflated salary, a Miami condominium loan, interior design services, and what prosecutors called his DJ hobby. The indictment also says Tarsha hid the company’s financial problems after a 2023 audit flagged alleged misconduct and kept up the appearance of ongoing development after nearly all staff had been laid off. Prosecutors said that when FAR finally launched in May 2024, the token was effectively worthless and soon stopped trading. The case adds to a growing list of U.S. federal actions tied to NFT-related fraud.

Federal prosecutors in the Southern District of New York, together with the FBI, announced charges against Taj Tarsha, founder of NFT project Few and Far Limited, on August 5. Tarsha faces securities fraud and wire fraud counts. Arrested on June 6, he is accused of raising more than $10 million by selling 95 million FAR tokens to at least 67 investors through Simple Agreements for Future Tokens starting in February 2022. According to the indictment, nearly from the outset he diverted investor money to online gambling and speculative cryptocurrency purchases, and drew close to $1 million in bonuses and salary he later admitted were unjustified. When an audit exposed the misuse in June 2023, Tarsha allegedly told investors the payouts were tied to FAR presale targets and that all funds remained dedicated to the company's mission. In fact, he had fired nearly all staff and directed remaining contractors to simulate ongoing development. He kept spending investor funds on personal items, including a Miami apartment loan, interior design and a DJ hobby, for at least another year. FAR tokens, when they finally launched in May 2024, had no value and trading stopped quickly.

Xpfinance said it has secured a $200,000 seed round led by Xenoverge Fund to develop a non-custodial lending and borrowing platform on the XRP Ledger, with mainnet plans for next quarter and a token presale set for May 8, 2025.

Xpfinance says it has secured a $200,000 seed round led by Xenoverge Fund to build a non-custodial lending and borrowing platform on the XRP Ledger, with an XPF token presale set for May 8, 2025.

The SEC filed enforcement action against Bitcoin Latinum founder Donald G. Basile and his companies, alleging a $16 million crypto securities offering fraud involving misrepresentations, misappropriation of funds for personal expenses including a horse, and eventual collapse of the token.

The SEC has charged Donald Basile, founder of Bitcoin Latinum, and his companies over a $16 million crypto securities offering fraud. Basile misrepresented insurance and asset backing, misappropriated funds for personal use including a horse, and the token became worthless.

The U.S. SEC filed enforcement action against Donald G. Basile and his companies for allegedly defrauding investors of $16 million through false claims about Bitcoin Latinum (LTNM). Basile misappropriated funds for personal expenses. The SEC seeks permanent injunctions, disgorgement, and civil penalties.