CFTC Sues Another Fraudulent ICO
The Commodity Futures Trading Commission of the United States (CFTC) filed a lawsuit against the creator of the company Fintech Investment Group and Compcoin LLC, Alan Friedland. He is accused of deceiving the participants in his company's ICO, which raised $1.6 million.
From the information provided, the defendant was deceiving people by offering them to buy a Compcoin token for two years (between 2016 and 2018). Friedland promised that using these digital coins, customers will be able to pay for services on the Fintech platform, designed for algorithmic trading in the Forex market. Also, Fintech Investment Group and Compcoin LLC claimed that their platform was able to provide a greater profit.
Alan Friedland claimed that their product was ready for launch on the open market, but in fact, he did not have approval from the National Futures Association (NFA) and, the CFTC claims, he should be aware. As a result, the company's customers did not gain access to the platform, and the Compcoin token devalued. CFTC intends to seek monetary compensation for investors, as well as fines for the management of the company.
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