Marc Powers, Jonathan Forman, Tiffany Miao Article Examines SEC Actions against Foreign-Based ICOs

Articles / June 7, 2018

Partner Marc Powers, Counsel Jonathan Forman and Associate Tiffany Miao authored an article published June 1, 2018, by BlockTribune. The article, “ICOs Avoiding U.S. Citizens Not Immune to Lawsuits in U.S.,” explores the emerging issues of personal jurisdiction and the court’s ability to adjudicate cases involving ICOs purportedly limited to foreign interests and parties. Although the courts have yet to weigh in on the issue, the authors detail the proactive steps taken by the SEC in support of its jurisdictional arguments in an enforcement action against a Canadian issuer and its affiliates currently pending in the Eastern District of New York. The authors suggest that simply shifting an ICO abroad and excluding U.S. investor participation will not necessarily preclude an issuer (or any affiliates) from the SEC’s enforcement efforts. And, much like how after the SEC’s 21(a) report last summer catalyzed private securities class action cases, the authors caution that these jurisdictional issues will not be limited to enforcement actions.

Read the article.