Don't Let the Prospects of "Getting In" on a Promising New Technology
Make You Forget to Do Your Homework
The SEC’s recent enforcement action against Centra Tech, Inc. is noteworthy: not for any conclusions it reaches relating to coin offerings or blockchain technology, but rather for the brazenness of the persons engaged in the misrepresentations alleged by the SEC. In short, this is a straightforward case of securities fraud. It does, however, remind us of the importance of undertaking due diligence, regardless of how shiny that “new penny” may appear to be.
This article provides an overview of CFTC and SEC regulation of cryptocurrency hedge funds for hedge fund managers investing in various strategies involving Bitcoin and alternative cryptocurrencies.
Our law firm focuses on advising hedge fund managers throughout the world in starting and operating US and offshore hedge funds. During the past several months, we have received more inquiries for starting cryptocurrency hedge funds (including Bitcoin Funds and coin alternative funds) than for all other hedge fund strategies combined.