We have all made bad calls over the course of our crypto investing lives. Whether it was not selling more at the top of the 2017 bull market, or buying during the $6,000 “dip”, we have all learned a valuable lesson. The same holds true for one crypto investor who followed investment advice from Blue Ocean Capital Group – a New York-based investment management firm. He plunged more than $2 million into MCash based on advice given by advisors from Blue Ocean Capital Group, which turned out to be a shitcoin of massive proportions.
What is MCash?
There is a good chance you have never heard of MCash, and we can’t blame you for that – most of the world hadn’t until Lijun Sun began the process to sue Blue Ocean Capital Group. MCash is an Ethereum-based ERC-20 digital token which is virtually non-existent online. It doesn’t trade on any known exchange and only has two holders – one who is presumably Sun with 999949990 tokens and another mystery wallet with 50010 tokens. It still has a value of $0.00, meaning Sun’s investment is literally worthless.
One huge problem with MCash and the investment Sun made into it is the fact that it’s not registered with the US Securities and Exchange Commission (SEC). Sun alleges that if he knew this, he would never have made the investment and is filing for an annulment of his investments based on this undisclosed information. On top of asking for his $2 million investment to be returned, Sun is also asking for a further $6 million in damages.
SEC Cracking Down on Unregistered Tokens
The SEC is happy for tokens to go live in America, provided they are registered with the SEC. The SEC has been investigating investment advisors and taking them down one by one for illegal activity in the crypto world. On top of this, it has also begun to expand the scope of its crackdown against unregistered securities. The SEC is simply trying to clean up the crypto space and remove the scammers from the industry before it launches a clear set of regulations.
Unfortunately, the crypto world is full of scams and fraudsters looking to make a quick buck, but the SEC is doing everything in its power to put an end to these fraudsters. Whether scammers are phishing for login details or posing as investment advisors, these scammers are still succeeding. Hopefully, as the SEC and other agencies crack down on these scammers then the crypto world will become safer, but it’s a long process.