SEC brings charges against CEO of Fantasy Market over ICO fraud

Maria Nikolova

Jonathan C. Lucas, the former founder and CEO of Fantasy Market, has been charged with orchestrating a fraudulent initial coin offering.

The efforts of the United States Securities and Exchange Commission (SEC) to put an end to cryptocurrency-related fraud continue. On Monday, September 23, 2019, the US regulator announced the bringing of charges against Jonathan C. Lucas, the former founder and chief executive officer of Fantasy Market, a purported online adult entertainment marketplace. Lucas is charged with orchestrating a fraudulent initial coin offering (ICO).

According to the SEC’s complaint, beginning in August 2017, Lucas raised approximately $63,000 in cryptocurrency from more than 100 investors through the fraudulent offer and sale of unregistered digital securities of Fantasy Market.

The complaint states that Lucas made numerous materially false statements in a whitepaper and online to induce investors to participate in the ICO. For example, Lucas claimed that a “working-beta” version of the company’s adult-entertainment platform existed when one did not, presented a fictitious management team, and misrepresented his own experience. After garnering media attention over investor complaints, the complaint states, Lucas returned the funds raised to investors.

The SEC’s complaint, filed in the New York Southern District Court, charges Lucas with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 (“Securities Act”) and Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 and the registration provisions of Sections 5(a) and 5(c) of the Securities Act.

Lucas has consented, without admitting or denying the allegations in the complaint, to the entry of a final judgment that imposes permanent injunctions from violations of the charged provisions. The judgment also orders the defendant to pay a civil penalty of $15,000, and imposes a five-year officer and director bar and a five year conduct-based injunction prohibiting Lucas from participating in any unregistered offering of securities, digital or otherwise, except for securities transactions for his own personal account. The proposed settlement is subject to court approval.

Read this next

blockdag

BlockDAG’s Revolutionary Dev Release 36: Off-Chain PoW and a $30 Projection by 2030

Explore BlockDAG’s latest off-chain PoW innovation and its $32M presale success. Projected to reach $30 by 2030.

blockdag

30,000x ROI Potential: BlockDAG Secures $33.5M in Presale, Outruns Retik Finance’s Bitmart Performance

Uncover how BlockDAG’s impressive $33.5M presale and its innovative platform draw investors away from Retik Finance following the Bitmart listing.

blockdag

IT Professional Switches to Lucrative Crypto Mining Entrepreneur with BlockDAG’s Advanced Mining Technology

Learn how an IT pro turned Litecoin mining into a fortune. See if BlockDAG can match this with advanced mining tech and 30,000X ROI potential.

blockdag

May 2024 Crypto Spotlight: Why Whales Are Choosing BlockDAG Over Retik Finance, Will CoinW & P2B Listing Save $RETIK?

Uncover why BlockDAG is winning over smart investors in May 2024, and surpassing Retik Finance’s performance on exchanges like CoinW and P2B.

blockdag

Ethereum Leads Altcoins Toward a Huge Rally: Expert Top Picks for Altseson Unveiled

A fresh surge in alternative cryptocurrencies is building momentum as Ethereum leads the charge.

Chainwire

BEVM Unveils Groundbreaking Taproot Consensus for Decentralized Bitcoin Layer 2 Solution

On May 20, 2024, the Bitcoin Layer2 development team BEVM released the technical yellow paper titled “Taproot Consensus: A Decentralized BTC Layer2 Solution.”

blockdag

AI Cryptos to Pump Hard After NVIDIA’s Q1 Earnings 📊

The recent earnings from a tech giant have hinted at a significant upswing for AI-focused cryptocurrencies.

Retail FX

Weekly Roundup: Republican to end Fed, Bankman-Fried moves to California

Let’s take a look back at top stories that dominated the financial markets in our Weekly Round coverage. This week’s digest takes a deep dive into the most recent events and trends within the Forex, Fintech, and cryptocurrency.

blockdag

BlockDAG’s $32.8M Presale Outshines Retik Finance’s MEXC Listing, Featuring Cutting-Edge Dashboard Innovations

Explore how BlockDAG’s innovations overshadow Retik Finance’s MEXC debut, attracting investors to its vibrant platform for unparalleled gains.

<