SEC Rejects Fraudulent Tomahawk ICO and Prohibits Company Founder

The US Securities and Exchange Commission (SEC) announced on Tuesday that it has secured prohibitions against the founder of Tomahawk Exploration, a company that attempted to raise funds through an allegedly fraudulent initial coin offering (ICO) for its token, Tomahawkcoin (TOM).

Launched in 2017, Tomahawk’s ICO aimed to collect $5 million to finance drilling operations in California. However, the offering did not attract any investors. Instead, the company initiated a “bounty program,” issuing tokens in exchange for online promotional services.

The SEC claims that Tomahawk and its founder, David Laurance, utilized misleading marketing materials and made false assertions regarding ownership of oil drilling licenses, along with providing exaggerated projections of oil output. The allegations also included a false promise of guaranteed returns for investors.