According to the Bloomberg report, the US SEC has ordered the Blockchain of Things to refund all the money raised in ICO back to the investors. The platform aimed to allow third-party developers to build applications for message transmission and logging, digital asset generation, and digital asset transfer.
Blockchain of Things raised $13 million in ICO in 2017.
Blockchain of Things raised around $13 million in an ICO conducted in December 2017. However, the US SEC has declared the ICO as unlawful a penalized the company for $250,000. In addition to the fine, BCOT will have to return all the funds back to the investors. The company raised $13 million in without having any working model, like many other projects.
SEC alleges that BCOT sold unregistered securities
This is not the first time that SEC had penalized a company for conducting an ICO. The exchange commission has clampdown in several ICOs this year. Carolyn M. Welshhans, associate director in the SEC’s division of enforcement, said that BOT failed to provide ICO investors with the information they were entitled to get in connection to a security offering.
He added that SEC would continue to consider appropriate remedies to provide investors with compensation and required information and to give companies who conducted unregistered offerings with an opportunity to move forward in compliance with the federal securities law.