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*Over the past two months, U.S. regulators have been concerned for retail investors taking their chances
with blockchain based ICO's. Just recently the SEC chairman, Jay Clayton, explained he was uneasy with
the latest ICO hype and referred to the projects as  pump and dump schemes. Clayton stated these 
remarks the day after the SEC created a new “Cyber Unit” taskforce to combat ICO fraud. Now the regulatory
agency has exposed an Ethereum-based ICO that was purportedly backed by real estate and diamonds.*

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*The SEC has charged Maksim Zaslavskiy and his companies for selling “unregistered securities” in two ICOs that used fake properties and gems to lure investors.*
*Investors in REcoin Group Foundation and DRC World (also known as Diamond Reserve Club) have been told they can expect sizable returns from the companies’ operations when neither has any real operations, explains the SEC announcement.*
# Zaslavskiy allegedly touted REcoin as The First Ever Cryptocurrency Backed by Real Estate.  Alleged misstatements to REcoin investors included that the company had a “team of lawyers, professionals, brokers, and accountants” that would invest REcoin’s ICO proceeds into real estate when in fact none had been hired or even consulted.