Two cryptocurrency startup has agreed to register the issued in the course of supply of coins (ICO) tokens as securities because of claims by the us financial regulator. It is reported by CoinDesk.
In the Commission’s document securities and exchange Commission (SEC) figure two firms: CarrierEQ Inc. (also known as Airfox) and Paragon Coin Inc. Both projects held tocancel last year. Airfox was able to raise $15 million, and Paragon — $12 million
The SEC argued that neither of these projects has not registered the ICO as an offer of securities and, thus, does not fall under the exception to the norm. Now both ICO startups are required to return funds to the investors and to report periodically to the Commission. In addition, each firm will pay $250 million in the form of a fine.
In a statement the Agency said that this is the first time that the American regulator enforces measures of civil liability on the basis that ICO-violated the securities laws because it is not registered properly.
The representative of the SEC Stephanie Avakian stated that the Agency “made it clear that the companies making securities through ICO, you must comply with all applicable regulations, including registration requirements”.
Also in the document of the Commission referred to the ICO project Munchee was suspended by the regulator at the end of last year. The representatives of the project agreed to pay the investors he collected $15 million. However, at that time the SEC did not impose any additional restrictions, for example, in the form of a fine.
We will remind, last week under the scope of the SEC got decentralized market EtherDelta, which is accused of selling unregistered securities.