REcoin / Diamond Reserve Club
Two 2017 ICOs run by Brooklyn's Maksim Zaslavskiy, marketed as tokens backed by real estate and diamonds that did not exist. The case produced the first U.S. criminal conviction for an ICO fraud; Zaslavskiy was sentenced to 18 months in 2019.
Also known as: REcoin, Diamond Reserve Club, DRC World, Maksim Zaslavskiy
Summary
In 2017 Maksim Zaslavskiy promoted two token offerings — REcoin (advertised as "backed by real estate") and Diamond Reserve Club / Diamond (advertised as backed by diamonds) — raising at least $300,000 from roughly 1,000 investors. Prosecutors and the SEC said the supporting assets and professional teams did not exist. [1][2]
Significance and outcome
A federal judge's 2018 ruling that the tokens could qualify as securities under the Howey test was an early, closely watched decision applying U.S. securities law to ICOs. Zaslavskiy pleaded guilty to conspiracy to commit securities fraud and was sentenced in November 2019 to 18 months in prison — the first criminal conviction for an ICO-based fraud. [1][2]
Bracketed numbers refer to the numbered sources listed below.
People & entities involved
Sources (2)
See also
- Bitcoin Latinum (LTNM)TokensA ~$16M token offering (SAFTs for 'Bitcoin Latinum' / LTNM) that the SEC charged in 2026 as fraud: founder Donald Basile falsely called LTNM 'the world's first insured digital asset' backed by an 'existing trust,' neither of which existed, and diverted investor funds for personal use (including a $160,000 horse).
- Loci (LOCIcoin)TokensA 2017–2018 ICO for 'LOCIcoin' tied to the InnVenn IP-search platform. The SEC charged Loci and CEO John Wise with fraud for raising $7.6M on false claims about revenue, headcount, and user base; Wise also misused investor funds. Settled with a $7.6M penalty and an officer/director bar.
- Blockchain Terminal (BCT)Tokens
This page was last updated on Jun 8, 2026. View revision history.