1% from the 1%
So we’ve seen a drop in crowdfunding raises recently. According to the SEC, between 2023 and 2024, Reg A raises are down 52% in numbers, Reg CF raises are down 25% and Regulation D raises are down 7%, and between 2021 and 2024 the figures are down 63% for Reg A, 5% for Reg CF, […]
Tokenization Isn’t Magic: Compliance Still Matters in the Digital Asset Space
With recent Congressional developments like the GENIUS Act and the CLARITY Act, the digital asset space appears to be entering a second wave following the initial frenzy of 2021 and 2022 (remember the Bored Ape Yacht Club?). Yet amid the changing landscape, one belief has persisted among some players: the idea that turning an existing […]
Crowdfunding is for everyone.
One thing I will never get tired of working in this space is the variety of companies that have been able to effectively utilize offerings under Regulation CF and Regulation A. These exemptions are versatile, and allow for companies to raise funds whether they have no interest in being more than a neighborhood restaurant, or […]
Lesson of the month: following the money
Here’s the latest instalment of the I’m-not-calling-it-fraud-of-the-month series. This lesson actually derives from two separate exempt offerings where financials that looked legit at the outset turned out to reflect a different reality. Company A presented financials that showed substantive revenues. However, those revenues were derived from related companies (a fact that was not disclosed) and […]
Beware of Overhyping AI: The SEC Is Watching
Powered by CrowdCheck human intelligence* Companies hyping their AI capabilities should tread carefully—especially when investors are involved. The SEC recently charged Presto Automation Inc. for misleading claims about its AI-powered drive-thru ordering system. The company touted fully automated voice ordering, but in reality, human intervention was often required. This kind of “AI washing” can lead […]
Another reason not to violate Section 17(b)
CrowdCheck has blogged many times before about Section 17(b), the stock touting rule. Here’s where we outlined the basics more than ten years ago. Since then, the SEC has brought many Section 17(b) cases, some of them against some very well-known athletes and influencers. Some of those people were fined millions of dollars for promoting securities […]