As more fully explained in a Cadwalader Memorandum, these recent enforcement actions may shed light on the SEC's future plans for regulating ICOs. An ICO is used to raise funds for a new company, similar to an initial public offering ("IPO"). ICOs offer investors digital tokens that are supported by blockchain technology. In Mr. Zaslavskiy's case, the SEC determined that the fictitious virtual tokens he offered in exchange for investments could be classified as securities because they were marketed as being "backed" by investments. According to the attorneys, this determination is a significant development for the SEC, which appears poised to allow ICOs to continue but increasingly willing to step in to prevent fraud in the space.