Accused Fraudster Says Cryptocurrencies Aren't Securities

By Jon Hill (February 27, 2018, 10:26 PM EST) -- A Brooklyn businessman whom the government has charged with securities fraud over two initial coin offerings allegedly marketed through his companies REcoin and Diamond Reserve Club urged a New York federal court on Tuesday to dismiss the government's indictment, arguing that cryptocurrencies such as those involved in the offerings aren't actually "securities" under the law.

Maksim Zaslavskiy was arrested and indicted in November on one count of securities fraud conspiracy and two counts of securities fraud for what federal prosecutors alleged was a scheme to dupe investors into buying tokens in the REcoin and Diamond initial coin offerings.

According to the...

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