The Commission on securities and exchange Commission (SEC) fined $50 thousand CoinAlpha Fund Advisors LLC for the sale of unregistered securities. This was reported on the website of the Department.

The document States that the Fund is to invest in scriptactive was established in October last year. The company managed to raise funds of $600 thousand.

CoinAlpha operates without proper registration. Also, the Fund did not comply with KYC procedures for verifying that investors are accredited. Subsequently CoinAlpha hired specialized in KYC – procedures a third party company, however this was done after the SEC contacted her.

The document also notes that CoinAlpha return all funds to investors.

“Only 22 investor invested $608 491 to the Fund. In October 2018, after representatives of the Commission contacted CoinAlpha, the Fund was closed”, — noted in SEC.

It is noteworthy that due to cooperation with the Agency, the SEC limited only by the sanctions that have been agreed with CoinAlpha in advance. In particular, the company undertook not to violate future securities laws. Also, in addition to the requirement about return of means to investors, at CoinAlpha was fined $50 thousand.

Earlier, the SEC similar measures adopted in relation to the ICO startups Airfox and Paragon, as well as a decentralized exchange EtherDelta. Because the companies cooperated with the regulator, they managed to get off relatively mild punishments.

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