(Hedge Fund Law Report) Advisers who invest in initial coin offerings and other digital assets may run afoul of federal securities laws when those assets are deemed to be securities. In a recent enforcement proceeding, the SEC claimed that a fund manager and its founder, who ran a domestic fund that invested in digital assets, engaged in an unregistered, non?exempt securities offering; failed to register the fund they were offering as an investment company; and falsely claimed that the fund was registered with the SEC.

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