Compcoin Hit With Securities Fraud Suit Over Coin Offering

A blockchain project’s backers engaged in security fraud when they solicited investments in an unregistered initial coin offering, a new complaint says.

Compcoin LLC, Fintech Investment Group Inc., and their executives deceived investors when they promoted an ICO to purportedly create artificial intelligence for foreign exchange trading, according to the complaint filed Dec. 31 in the U.S. District Court for the Eastern District of New York.

Alan Friedland founded both Compcoin and FIG, according to the complaint. He and three other executives are named as defendants in the suit.

Compcoin successfully got Marland Kaplan to invest $2,500 in 3,050 of ...