SEC Orders against Paragon and Airfox
The Securities and Exchange Commission has ordered penalties against two Initial Coin Offerings: Paragon and Airfox. According to SEC, both the companies failed to register their ICO tokens as securities under the securities and exchange act 1929. Thus both companies Paragon and Airfox (CarrierEQ) have reached out for settlement with the agency where each of the company have to pay $250,000 to the securities and exchange commission. Notably, all the investors of the initial coin offerings have got an opportunity for a refund.
Press Release by SEC
According to the press release published by Securities and Exchange Commission, the agency has imposed a fine of $250,000 against Paragon and Airfox which includes the amounts which will be used to compensate the investors in both Initial Coin Offerings which are being termed as Illegal Offerings. Also, the agency has ordered both the companies to register their respective tokens as securities under the securities exchange act 1934.
Steven Peikin, the Co-Director of Securities and Exchange Commission Enforcement believes that the following action against both these companies will help the agency to encourage the other United States based Initial Coin Offerings to register with the federal securities laws.