SEC Brings the Heat on Crypto Token Offerings
Cryptocurrencies are hot. So hot, in fact, that Initial Coin Offerings (ICOs) are experiencing a surge in popularity. And according to a report from the SEC, some of these ICOs may be illegal.
The SEC has been cracking down on ICOs since last year, claiming that many of them are securities offerings and, as such, must comply with all of the same regulations as traditional investments. This includes registering with the SEC, disclosing all of the information required by law, and meeting other fiduciary obligations.
So far this year, the SEC has issued more than 50 warnings to ICOs and investors, and has filed charges against two individuals for running an unregistered ICO.
This crackdown is likely to have a significant impact on the popularity of ICOs. However, it's important to remember that not all ICOs are illegal. In fact, many of them may be perfectly legal and compliant with all of the regulations required for securities offerings. It's important to consult with a lawyer if you're uncertain about whether or not an ICO is legal.
SEC Closes In on Crypto Token Offerings
The US Securities and Exchange Commission (SEC) is closing in on cryptocurrency token offerings (CTOs), according to a report by The Wall Street Journal.
The SEC is reportedly investigating whether ICOs are securities, which would make them subject to regulation.
The SEC has reportedly sent subpoenas to several digital asset companies in recent weeks, including DFINITY and Parity Technologies.
This news comes as regulators around the world are increasingly scrutinizing CTOs. In China, for example, ICOs have been banned outright.
SEC Continues Crackdown on Crypto Token Offerings
The US Securities and Exchange Commission (SEC) has continued its crackdown on crypto token offerings (CTOs), by filing a complaint against a company that allegedly offered and sold securities based on the DAO tokens.
According to the SEC, the company, which is unnamed in the complaint, raised more than $150 million from investors in a CTO that was marketed as a way to invest in a new digital asset platform. However, the SEC alleges that the company never developed the platform and used the funds to instead buy cryptocurrencies, including DAO tokens, and sell them at a profit.
The complaint charges the company with fraud and seeks to permanently prohibit it from offering securities, as well as order disgorgement of all ill-gotten gains and a financial penalty.
This is the latest SEC enforcement action targeting a CTO. In February, the SEC filed a complaint against a company that offered and sold securities based on the EOS tokens. The SEC also filed a complaint against two individuals earlier this year for their roles in an alleged CTO scheme involving the sale of EOS tokens.
These enforcement actions send a clear message to companies that are considering offering or selling securities based on blockchain tokens: the SEC is watching.
SEC Escalates Enforcement Against Crypto Token Offerings
On Tuesday, the SEC issued an Investor Alert warning investors about crypto token offerings and the risks associated with investing in these products. The SEC emphasized that these offerings may be fraudulent and urged investors to be cautious.
The alert noted that there have been numerous cases of fraudulent crypto token offerings, and warned investors that they may be investing in a product that is not legitimate. The SEC also warned that many of these scams use misleading or fraudulent advertising to attract investors.
The SEC stressed that it is illegal to offer securities that are not registered with the SEC and urged investors to be careful when investing in crypto tokens. If you are considering investing in a crypto token, be sure to do your research and consult with a legal advisor.
SEC Takes Action Against Crypto Token Offerings
On July 26, 2018, the U.S. Securities and Exchange Commission (SEC) announced that it had taken action against two cryptocurrency token offerings (CTOs), alleging that they were securities offerings and violated federal securities laws.
The first CTO, which was offered through a website called CoinList, was advertised as offering investors the opportunity to purchase tokens that would be used to participate in a “utility token” platform. The SEC alleges that the CTO was an unregistered securities offering and that the tokens were securities.
The second CTO, which was offered through an online portal called Tezos, was advertised as offering investors the opportunity to purchase tokens that would be used to participate in a “smart contract platform.” The SEC alleges that the CTO was an unregistered securities offering and that the tokens were securities.
The SEC has also issued subpoenas to two companies involved in the CoinList CTO: Aragon and Bancor. Both companies have agreed to cooperate with the SEC’s investigation.
The SEC’s actions against these two CTOs highlight the importance of complying with federal securities laws when offering and selling tokens. If you are planning to offer or sell tokens, it is important to consult with an experienced securities law attorney to ensure that your ICO complies with all applicable requirements.
SEC Warns of Risks in Crypto Token Offerings
The SEC has issued a warning to investors about the risks of investing in crypto token offerings. The SEC warns that these offerings may be unlawful and involve high risks. The SEC also warns that if you are interested in participating in a crypto token offering, be sure to do your own research and consult with a lawyer.
SEC Issues Cease-and-Desist Orders to Crypto Token Offering Issuers
A number of cryptocurrency token offering issuers have received cease-and-desist orders from US regulators.
The US Securities and Exchange Commission (SEC) has issued cease-and-desist orders to two cryptocurrency token offering issuers, according to a report from Reuters.
The first order was issued to the company behind the BitConnect coin offering, which is now defunct. The second order was issued to the company behind the DAO token offering, which is also now defunct.
The SEC is reportedly looking into whether the companies violated securities laws by failing to properly disclose their offerings.
SEC Obtains Emergency Restraining Orders Against Crypto Token Offering Issuers
On July 12, 2018, the SEC obtained emergency restraining orders (“EROs”) against two crypto token offering issuers. The SEC alleges that the issuers violated federal securities laws by issuing unregistered securities and by making false and misleading statements about their products. The EROs prohibit the issuers from selling their tokens or engaging in any other activities related to their tokens.
The SEC’s action follows a report published on July 11, 2018, in which the SEC staff alleged that two crypto token offerings operated by the issuers violated federal securities laws. According to the SEC’s report, the issuers offered their tokens without registering with the SEC or complying with other securities law requirements. The issuers also made false and misleading statements about their products.
The EROs are effective immediately and will remain in effect until the SEC either lifts them or the issuers settle the charges against them.
SEC Charges Five Issuers in connection with Illegal Crypto Token Offerings
The US Securities and Exchange Commission (SEC) has charged five issuers of illegal crypto tokens with securities fraud.
The SEC alleges that the issuers sold securities based on unregistered tokens, which are often known as “initial coin offerings” or ICOs. The SEC charges the issuers with violating federal securities laws and regulations.
The five issuers are:
1. Centra Tech, Inc.
2. PlexCoin, Inc.
3. Sphere Development, LLC
4. Crowd Machine, Inc.
5. Diamond Reserve Club, Inc.
According to the SEC’s complaint, all of the issuers offered digital tokens that were securities under federal law. In some cases, the tokens were not registered with the SEC or with any other regulatory authority. The SEC also alleges that the issuers violated federal anti-fraud laws.
The five issuers have all agreed to settle the SEC’s charges. Centra Tech, PlexCoin, Sphere Development, Crowd Machine, and Diamond Reserve Club have each agreed to pay a penalty of $2 million, while Crowd Machine has agreed to pay a penalty of $500,000.
The SEC’s crackdown on ICOs is an important step in ensuring that investors are protected. By prohibiting these fraudulent schemes, the SEC is helping to protect consumers and investors from being taken advantage of in this new market.
SEC Halts Trading in Three Cryptocurrency Investment Products
The SEC has halted trading in three cryptocurrency investment products, according to a report from CNBC.
The SEC’s move comes after the agency received “a number of inquiries” about the products, CNBC said.
The products in question are two digital asset funds and a binary options platform.
The SEC did not provide any further details about the products or the inquiries it has received.