ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.


24hr ---

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story


Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
Ether Price Analysis
Contact Us

SEC Files Charges Against Fraudulent Real Estate And Diamond-Backed Token Offering Companies




RECoin and DRC World defrauded investors and engaged in virtually no business activities despite claiming to offer sizeable returns, alleges the SEC. Today, the agency filed charges against businessman Maksim Zaslavskiy and his two companies.

On September 29, 2017, the Securities Exchange Commission announced that businessman Maksim Zaslavskiy and his two companies (RECoin and Diamond Reserve Club World) have been charged with defrauding investors in a pair of token offerings supposedly backed by real estate and diamonds respectively.

The SEC has obtained an emergency court order to freeze assets belonging to Zaslavskiy and his companies after filing a complaint with a federal district court in Brooklyn, N.Y., charging RECoin and DRC World with violations of anti-fraud and registration provisions of federal securities law. The SEC seeks permanent injunctions and disgorgement plus interest and any applicable penalties.

Per the release, "The SEC alleges that Maksim Zaslavskiy and his companies have been selling unregistered securities and the digital tokens or coins being peddled that don't really exist." Investors were told to expect sizeable returns from the companies' operations, but no such operations existed according to the SEC’s complaint.

Zaslavskiy allegedly advertised REcoin as "The First Ever Cryptocurrency Backed by Real Estate." The SEC further alleges that Zaslavskiy falsely claimed to investors that REcoin had "a team of lawyers, professionals, brokers, and accountants" who would invest token offering proceeds in various real estate ventures. In truth, none of these professionals had been hired, or consulted. In addition, Zaslavskiy allegedly misrepresented the amount raised from investors as between $2 million and $4 million when only $300,000 was raised in reality.

Zaslavskiy reportedly used the same scam in a separate venture that claimed to invest in diamonds by exploiting retailer discounts for "membership" holders. Again, the SEC asserts that DRC World neither purchased diamonds nor engaged in any business operations.

Andrew M. Calamari, Director of the SEC's New York Regional office issued this warning to investors: "Investors should be wary of companies touting ICOs as a way to generate outsized returns. As alleged in our complaint, Zaslavskiy lured investors with false promises of sizeable returns from novel technology."

Jeremy Nation

Jeremy Nation is a writer living in Los Angeles with interests in technology, human rights, and cuisine.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest SEC, RECoin or other Ethereum law and legislation news.