The first, called the "Diamond Reserve Club" claimed to be "a token hedged by physical diamonds insured for their full value".
The second called RECoin promised "Revenues from the initial sale of tokens will be invested in the highly regulated real estate market in virtually all jurisdictions"
The SEC is claiming both claims are false, that both the diamonds and real estate assets never existed and there were no real plans to put the ICO promises into action.
A statement on the now shut down Diamond Reserve Club website states:
While we disagree with the SEC’s claims that the tokens we sold are securities, and will vigorously defend ourselves, we are cooperating with the SEC in the hope of resolving this issue.
The now shut down Diamond Reserve Club |
We will be following this story for further development.
-------
Author: Ross Davis
San Francisco News Desk