Abstract : NextBlock and Tapscott falsely represented that as many as four individuals who are prominent in the blockchain industry and used this as part of selling point for its fundraising attempt.
May 16 (ChainDD) The US Securities and Exchange Commission (SEC) announced on May 14 EST that it orders instituting cease-and-desist proceedings against Canada-based investment company NextBlock Global along with its co-owner and CEO Alex Tapscott. These to respondets admitted SEC’s jurisdiction over them and shall respectively pay a money penalty of $700,000 CAD (about $520,000 USD) and $25,000 USD.
According to SEC, neither NextBlock nor its securities has ever been registered with SEC. Even worse, NextBlock and Tapscott falsely represented that as many as four individuals who are prominent in the blockchain industry—three of whom are based in the United States—were serving as advisors to the company, and used this as part of selling point for its fundraising attempt. Such misrepresentations were reported until November, 2017, while the company’s second fundraising effort was underway.
ChainDD noted Alex’s father Don Tapscott was the author of a best seller Wikinomics. The father and son wrote Blockchain Revolution, a popular primer of cryptocurrency space. The book is recommended by celebrities such as Marc Andreessen, cofounder of the leading Silicon Valley venture capital firm Andreessen Horowitz and Apple Inc’s cofounder Steve Wozniak, as well as mainstream publications such as Forbes Magazine.