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Feds eye crackdown on digital coin investments

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Free Vulcan:
A new approach to fundraising by startups that uses digital currencies like bitcoin is sparking concern among lawmakers and regulators, and calls for tougher rules.

At issue are initial coin offerings, where new companies or smaller projects seek to crowdfund — or raise investment funds from the public — through crypto online currencies.

While many of these offerings are well-intentioned, others are scams and some have weak security making them susceptible to hacks.

That's led to growing calls for new regulations to protect investors and consumers.

The Securities and Exchange Commission is already taking notice.

The agency on Tuesday made public an investigation it conducted on digital coins sold by "The DAO" — an online leaderless group that used a cryptocurrency called Ethereum."

Hackers targeted the group in May of last year after one of the highest-profile initial coin offerings. That attack destroyed the group and the value of its coins, leading many to lose money...

Read more at: http://thehill.com/policy/technology/344410-feds-eye-crackdown-on-digital-coin-investments

dfwgator:
Government just can't stand not getting a cut.

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