Per government order, Chinese ICOs return money to investors

Sept. 26, 2017

Following a government recent crackdown on initial coin offerings in China, many of the country's ICOs are returning money to investors.

Approximately 90 percent of investors have received their money back, although some ICOs are holdouts, according to a report by Forbes. A few companies, including NEO, are refusing to return money to investors unless investors specifically ask for their cash back.

This year, ICOs raised $1.1 billion, and massive fundraisers were held publicly to standing-room-only crowds of speculators. The Chinese government likely saw these as gambling events, which might have prompted the shutdown, the report said.

Anton Dzyatkovsky, CEO of MicroMoney, said in the report that there are two kinds of Chinese investors: The first won't even attend events with the word blockchain in the title for fear of getting in trouble with the government; the second will forge ahead regardless of government mandates.

"[The second type] are the ones who are re-registering their blockchain companies in Hong Kong and Singapore, and will continue operations shut down by the central bank," Dzyatkovsky told Forbes.

Topics:Bitcoin, Regulation

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