The United States Securities Exchange Commission (SEC) is not letting all the Initial Coin Offering (ICO) fraudsters off the hook. Online adult entertainment website CEO Jonathan Lucas is finding that out.
Mr. Lucas is one of the latest to be charged by the SEC with fraud for collecting money from crypto investors without approval or intention of launching a product, application or producing real return for those who contributed.
The popular messaging app, Kik recently announced their shutting operation to focus on the SEC criminal case brought against the company for it’s KIN ICO, in which it raised $100 million from investors. The firm says it wants to direct its resources and focus its energy fighting the SEC’s charges.
In the lawsuit against Lucas, 27, the SEC claims he promised investors they can use the purchased ICO tokens for 1-on-1 live actions with adult performers on the of their choosing on the chat platform.
According to their Linkedin profile,
“Fantasy Market is a role-playing performance marketplace for live, client-controlled digital performances.”
The profile claims,
“Through the use of our tokens, you control what the performers say and do during the show.”
The SEC claims Mr. Lucas was the only real person amongst the dozens of team members listed on the ICO’s white paper and elsewhere. The rest were fictional members. The claim also says Lucas made many unrealistic promises and false statements in order to defraud investors out of as much money as possible.
Mr. Lucas launched it the fraudulent ICO on September 3, 2017 and collected fiat money, as well as other cryptorurrencies from investors until October 16 of that same year. According to the project’s white paper, a total supply of 125 million FMT tokens. The aim was to raise $25 millions with each token priced at 20 cents.
The Fantasy Market ICO ran for 6 weeks and raised $63,000 in fiat and cryptocurrency from 100+ unknown investors. Jonathan Lucas fraudulently claimed the Initial Coin Offering had actually raised $2 millions from the $25 million intended. The SEC said Lucas promoted FMT ICO through a combination of misleading statements and outrages returns on investment claims.
Lucas claimed the seed money was collected from private accredited investors, that the tokens were registered digital securities and would be listed on major crypto trading exchanges. None of those claims were true.
According to charges filed by the SEC, the tokens were never issued to investors and that the smart contract on the ethereum application didn’t even exit.
The Fantasy Market website seems to be offline at this moment, but earlier today they posted the following statement to ICO investors.
The company’s phone number is offline and email sent asking for a statement has not been answered. If you were a victim of Jonathan Lucas’ Fantasy Market fraudulent ICO, please post a comment below so we can assess the damage.