The Commission on securities and exchange Commission (SEC) has forced the ICO projects CarrierEQ Inc. (Airfox) and Paragon Coin Inc. to register their tokens as securities with the payment of a fine in the amount of $250 million, refunds to affected investors and providing to the controller periodic reports, not less frequently than once a year. According to representatives of the SEC, this is the first cases where the Commission used “civil penalties for violation of registration of the securities offered under the guise ICO”.
As stated in the SEC a year ago through the placement of tokens, the projects raised $15 million and $12 million, respectively, but did not take into account the conclusions of the regulator on the previously published report by The DAO. In it, the Commission warned the organizers of the ICO that some tokens can be deemed securities requiring registration.
Recall that in mid-October, the SEC again massively sent subpoenas to the organizers of the ICO. According to Yahoo Finance and Decrypt, under pressure of the Commission dozens of projects agreed to return money to investors and pay a fine.
a week ago the SEC accused the founder of the decentralized cryptocurrency exchanges EtherDelta Coburn Zachary (Zachary Coburn) in the control is not passed official registration of the exchange securities. In the course of the proceedings it is not acknowledged and not denied the accusations, but cooperated with the investigation and as a protection against more severe penalties agreed to return in favor of the United States received profit in the amount of $300 thousand, interest for the period prior to judgment in the amount of $13 thousand and $75 thousand as a penalty.
And in December last year, the California company Munchee Inc. to fully compensate investors funds received during the ICO. The project has offered users a new service of restaurant reviews, but attracted the attention of the SEC. Libertreserve and came to the conclusion that under the guise of ICO have traded, unregistered securities. At the insistence of the SEC project, without waiting for the decision of the court, returned to investors $15 million.