Share this article
Massachusetts Sues ICO Organizer for Alleged Securities Violations
Massachusetts' securities enforcement office is suing a resident and his company for selling unregistered securities in a token sale.
By Nikhilesh De
Updated Sep 13, 2021, 7:23 a.m. Published Jan 19, 2018, 2:00 p.m.
The Massachusetts Securities Division is charging a resident of the state with violating securities and business laws through an initial coin offering (ICO)
The division, part of the Office of the Secretary of the Commonwealth, accuses Brookline, MA, resident Kirill Bensonoff and his company, Caviar, of selling unregistered securities after he launched an ICO to sell "caviar" tokens from his home.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
While Caviar’s website stated it would only sell its tokens to non-U.S. residents, its controls were not stringent enough to actually prevent American residents from buying tokens. The filing claims that at least two U.S. residents were able to participate in the ICO.
The proceeds from the token sale would be used to "flip" properties, according to the Boston Herald. Caviar was to also invest in cryptocurrencies on a longer-term basis.
The filing continues that, contrary to the firm's claims that Caviar tokens were not securities, the way the company was set up makes the tokens a "textbook example of a conventional security," and therefore needed to be registered as such or classified as exempt from registration. Bensonoff had not registered or received an exemption for his token scheme.
According to the filing, Bensonoff had raised $3 million of a planned $24 million via the token sale.
Caviar is registered as an entity in the Cayman Islands, but Bensonoff has never visited the country and the firm has had no physical locations there, according to the filing, which continued on to say Bensonoff claimed to have registered in the islands because "we decided that that's a jurisdiction that we felt comfortable with."
Massachusetts' Secretary of the Commonwealth, William Galvin, said the filing is a warning for anyone else who would use an ICO to circumvent securities laws, according to the Herald.
In a statement to BizJournal, Bensonoff said he did not think Caviar violated Massachusetts securities laws, and that he had been talking to the Secretary's office.
He continued:
"We expect to continue that dialogue and believe that we can meet the Secretary's concerns regarding Massachusetts purchasers."
Gavel image via Shutterstock
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
Bitcoin pushes above $90,000 as traders eye change in pattern
Particularly hard-hit in 2025's final sessions, crypto-related stocks are bouncing in this year's first trading day.
What to know:
- Bitcoin rose above $90,000 during U.S. trading hours on Friday.
- It's a notable change in trend, as crypto prices late in 2025 were typically on the defensive while American stocks traded.
- Strategy, Coinbase, Hut 8 and Galaxy Digital were among the crypto-related stocks seeing strong gains.
Top Stories
