Crypto-Fraudster Faces Five Years

Maksim Zaslavskiy, a Brooklyn businessman was arraigned in court yesterday, November 1, charged with securities fraud after trying to scam investors with a cryptocurrency scheme, said the U.S. Attorney in a statement.

Zaslavskiy used two companies in an attempt to defraud investors, claiming that the cryptocurrency he was launching in an Initial Coin Offering was backed by real estate and diamonds through REcoin Group Foundation and Diamond Reserve Club World, respectively. The assets, however, were spurious.

“As alleged, Zaslavskiy and his associates enticed investors by promising returns… even though Zaslavskiy knew that no real estate or diamonds were actually backing the investments,” stated Acting United States Attorney Rohde. “This Office and our partners at the FBI are committed to protecting investors and ensuring that the securities markets are free from manipulation.”

Separately, the United States Securities and Exchange Commission (SEC) has filed civil charges against Zaslavskiy.

Currently, the Diamond Reserve Club website has been replaced by a statement disagreeing with the charges.

Arraigned in court yesterday, the 38-year old faces up to five years in prison if convicted.