ADVERTISEMENT

Block.one to pay $24 million fine for a $7 billion ICO

Must Read

Indian regulators postpone introducing the “anti-cryptocurrency” bill.

The Indian government earlier revealed that it is drafting a bill that would ban the use of all cryptocurrencies...

Chinese Regulators to focus on Crypto Mining Firms in Mongolia

China has been a significant sector for the process of cryptocurrency mining since the beginning. Over the years, China...

Digital Bazaar awarded with $200k by the U.S. Homeland Security

The adoption of blockchain has seen a massive surge in the past few months as more and more organizations...
Vineet Chaudhary
Vineet Chaudhary
Vineet Chaudhary is a content writer with computer applications as his background field. His interests range from writing and photography to going out for trips and rides on weekends.

The SEC has settled the charges that were raised against Block.one by imposing a fine of $24 million for selling unregistered securities. SEC's announced on Monday how the company raised billion dollars in an ICO that took place between June 2017 and June 2018.

The SEC has settled the charges that were raised against Block.one by imposing a fine of $24 million for selling unregistered securities. SEC’s announced on Monday how the company raised billion dollars in an ICO that took place between June 2017 and June 2018.

The company sold around 900 million tokens, and they attracted the headlines when they raised $4.1 billion without even a live product. The ICO was not registered as security offerings, and a major portion of the investors was from the United States.

Stephanie Avakian, the co-director of the division of enforcement, SEC, explained how every company that sells or is planning to sell securities offering to US investors have to comply with the laws. The industry in which they operate does not matter, and neither does the name that they place on the investment products.

A civil penalty was also imposed on the blockchain company as they violated the registration provisions. They didn’t provide the ICO investors the correct information that they were entitled to give them. Block.one responded by saying that the penalty was imposed on the EOS tokens only which were released on Ethereum blockchain. These ERC-20 tokens were later swapped for EOS tokens by the holders.

Block.one was given waiver by the SEC so that their ongoing operations can work well and they believe that this granting by SEC shows how they have worked in compliance of the rules and did best practices in the United States and globally.

Disclaimer: Coinnounce's views are not necessarily reflected in the articles published, and they are the sole representation of the author's opinions. Article's information should not be taken as investment advice. Risks are involved in cryptocurrency investments and trading. Readers are urged to carry out extensive research before making a decision.

Leave a reply

Please enter your comment!
Please enter your name here

Latest News

Indian regulators postpone introducing the “anti-cryptocurrency” bill.

The Indian government earlier revealed that it is drafting a bill that would ban the use of all cryptocurrencies...

More Articles Like This