SEC v. Tomahawk

The SEC sues Tomahawk and Lawrence for violating sections 5(a) and 5(c) of the Securities Act by offering and selling unregistered TOM tokens. Tomahawk and Lawrence also violated antifraud provisions by falsely stating Tomahawk’s prospective success and lying about Lawrence’s criminal record.

Set a precedent for future enforcement actions against ICOs and other digital token offerings. This case also clarifies that tokens distributed through bounty programs could be considered securities.

File No. 3-18641