SEC Charges Live Adult Performance Company ‘Fantasy Market’ With Running An ICO Fraud
Fantasy Market, an adult entertainment platform, has been revealed to be an ICO scam managed by its CEO, Johnathan Lucas. This scam had managed to steal upwards of 67 thousand dollars before it was revealed to be what it was on the 20th of this month.
Johnathan, aged 27, had marketed his adult entertainment platform with its own cryptocurrency aptly named Fantasy Market Digital Token (FMT), which he claimed could be used to pay for specific adult services. Within the timeframe of September to October 2017, Johnathan managed to garner 63 thousand dollars of his over 25 million goal.
The CEO even claimed to have garnered over 2 million in funding when he spoke to the press during this timeframe, adding that he had a selection of credible private investors that had taken part in a pre-sale of his tokens.
Fantasy Market seems to be an act of smoke and mirrors, as many of the claims Johnathan had made simply fell through. He falsely claimed that there was a working beta of the platform, presented a fictional management team to investors, and lied about his work experience in a bid to garner more investors. Even the claim that his tokens would be listed as one of the major cryptocurrency exchanges was all just more lies to fuel his scheme.
Further insult to injury was his false assertion that you could only buy it with Bitcoin and Litecoin on their blockchains. In fact, his Fantasy Market Tokens didn’t even show evidence of existence. He mostly spread the word of his Tokens through various posts on the Internet without any true backing for his claims.
After enough media coverage, Johnathan allegedly returned the funds, but not before the SEC (Security and Exchange Commission) ordered him to pay a fifteen thousand dollar fine. Along with this, he is barred from any Officer or Director position, with a 5-year injunction forbidding him from any unregistered transactions involving security, digital or not.