Jordan Belfort, nicknamed the “Wolf on Wall Street,” has publicly denounced initial coin offerings (ICOs) calling them the “biggest scam ever.”
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“It’s the biggest scam ever, such a huge, gigantic scam that’s going to blow up in so many people’s faces,” Belfort said. “It’s far worse than anything I was ever doing.”
China has banned ICOs and several other countries have developed or are in the process of developing regulations for them.
Russian President Vladimir Putin directed new rules around cryptocurrency, which include registration requirements for miners and security laws on initial coin offerings (ICOs).
One of the new orders mandates the conception of an ostensible regulatory “sandbox,” or an outline within a startup where businesses can test products in restricted situations.
However, according to a statement from Mangrove Capital Partners, a venture capital firm, investors who have backed ICOs have seen enormous returns in a brief time.
Jordan Belfort made millions in the 1990s through his investment company, Stratton Oakmont.
In 1999, Belfort pleaded guilty to securities fraud and money laundering.
In 2003, Belfort was sentenced to four years in prison and personally fined $110 million. He served 22 months in jail.
His memoir is the basis for the 2013 Martin Scorsese film ‘The Wolf of Wall Street,’ starring Leonardo DiCaprio.