👩🏻‍⚖️ ICO fraud lawsuit proceeds to trial in the Eastern District of New York federal court

In a Memorandum & Order, a federal judge in the Eastern District of New York denied the defendant's motion to dismiss in United States v. Zaslavskiy. Zaslavskiy (defendant) is charged by the Government with three counts of securities fraud in connection with two ICOs: REcoin and DRC. The defendant moved to dismiss the case in court by arguing that REcoin & DRC aren't securities and that securities laws are unconstitutionally vague as applied to this case.
The judge denied the defendant's motion on the grounds that the indictment is sufficient under the Constitution, and because the law (regulatory and criminal enforcement of the securities laws) under which Zaslavskiy is charged is not unconstitutionally vague as applied. Thus, the judge proceeds the case to trial, where a jury may decide on the facts of whether or not the two ICOs satisfy the Howey Test.

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