A district court in the United States rules that tokens issued within tokensales and ICO should be subject to US securities laws.

U.S. District Judge Raymond Dearie in Brooklyn, New York, said that ICO tokens are securities, and their turnover can be considered in the context of the relevant criminal law.

“Per the indictment, no diamonds or real estate, or any coins, tokens, or currency of any imaginable sort, ever existed -- despite promises made to investors to the contrary," Dearie said in his ruling. “Simply labeling an investment opportunity as a ‘virtual currency’ or ‘cryptocurrency’ does not transform an investment contract -- a security -- into a currency.”

Dearie made this statement while hearing the case on fraud involving companies of the New York businessman of Ukrainian origin Maksim Zaslavskiy.

The US Securities and Exchange Commission (SEC) seized the businessman's assets in September and issued a statement accusing Zaslavskiy that the tokens of his two projects (Diamond Reserve Club World and REcoin Group Foundation) fall under the definition of securities.

Furthermore, the commission noted that it misled investors, promising a high yield, while its tokens were not secured with real estate and diamonds, as their prospects claimed.

The SEC also found that the REcoin tokensale managed to raise only $300,000, although the businessman claimed that he attracted $2-4 million to the project.

Zaslavskiy's lawyers claimed that the tokens of his projects are not securities, but currencies. However, Judge Raymond Dearie rejected their protest, saying that the case could be considered under the law on securities.