SEC Charges CEO of Crypto Startup for Unregistered ICO

2021-6-23 09:53

The U.S. Securities and Exchange Commission (SEC) has announced it has settled charges against a company and its CEO for making misleading statements in connection with an unregistered ICO.

The firm, Loci Inc., and its chief executive, John Wise, have been charged for making “materially false” and misleading statements in connection with an unregistered sale of digital assets.

The financial regulator posted the notice on its official website, adding the firm misused investor funds and made false statements concerning the company’s revenues, number of employees, and platform user base.

$7.6 million penalty

The SEC order found that from August 2017 through January 2018, Loci and its CEO raised $7.6 million from investors in an ICO by offering and selling crypto tokens called “LOCIcoin.”

The firm promoted a software platform called InnVenn which was touted as the “ultimate asset management system.” The order also found that Wise misused $38,163 in investor proceeds to pay his personal expenses.

LOCIcoins were actually classified as securities, the SEC added, but the offering was not registered with the regulator and no exemption from registration applied. Kristina Littman, chief of the SEC Enforcement Division’s Cyber Unit, stated:  

“Loci and its CEO misled investors regarding critical aspects of Loci’s business. Investors in digital asset securities are entitled to truthful information and fulsome disclosures, so they can make informed investment decisions.”

The firm has not admitted or denied the SEC’s findings, but agreed to a cease and desist order. It also agreed to destroying their remaining tokens and requesting the removal of them from trading platforms. It would also publish the SEC’s order on its social media channels, and refrain from participating in future digital asset securities offerings.

Crypto lawyer “_gabrielShapir0” [@lex_node] commented on the destruction of the tokens stating:

“Really disappointed with the direction the SEC has gone on tokens — it has nothing to do with investor protection anymore; in fact, the SEC is causing and exacerbating investor harm.”

The SEC’s order imposes a $7.6 million civil penalty against Loci and its CEO.

Crypto off the agenda?

On June 18, it was reported that the SEC had released its regulatory agenda for 2021 and cryptocurrency was not on it.

The move to leave bitcoin (BTC) and its brethren off the agenda is a little surprising since SEC Chairman, Gary Gensler, had often spoken about the need for more regulation regarding crypto assets.

The post SEC Charges CEO of Crypto Startup for Unregistered ICO appeared first on BeInCrypto.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Ceocoin (CEO) íà Currencies.ru

$ 0.00304614 (+0.00%)
Îáúåì 24H $0
Èçìåíåèÿ 24h: 0.00 %, 7d: 0.00 %
Cåãîäíÿ L: $0 - H: $0
Êàïèòàëèçàöèÿ $0 Rank 99999
Äîñòóïíî / Âñåãî 0 CEO

sec crypto ico ceo charges unregistered startup

Èñòî÷íèê: beincrypto.com

sec crypto → Ðåçóëüòàòîâ: 126


Ôîòî:

Crypto groups sue SEC, claiming overreach in new dealer rule definition

Two prominent bodies in the crypto sphere, the Blockchain Association and the Crypto Freedom Alliance of Texas, have taken legal action against the US Securities and Exchange Commission (SEC). In an April 23 court filing, the groups argued that the SEC overstepped its bounds by sanctioning a rule that redefines the parameters for what constitutes […] The post Crypto groups sue SEC, claiming overreach in new dealer rule definition appeared first on CryptoSlate.

2024-4-24 19:15


Ôîòî:

SEC director refutes narrative that regulator lacks regulatory framework for crypto

SEC Director of Enforcement Gurbir Grewal recently spoke at the SEC Speaks event, addressing the regulatory challenges the crypto industry faces. Grewal countered the narrative that the SEC lacks a clear regulatory framework for crypto, emphasizing the agency’s commitment to applying existing securities laws to the digital asset space.

2024-4-4 23:05


Not Interested? Why SEC Can’t Find Crypto Experts To Work With The Agency

The US Securities and Exchange Commission (SEC) is facing a growing challenge in filling vacant Crypto Assets Specialist positions within its ranks. The Office of the Inspector General (OIG) of the SEC recently published its “2023 SEC OIG Management and Performance Challenges” report, shedding light on the persistent issue of staff shortages in the SEC’s […]

2023-11-7 13:00


Crypto In Danger? SEC’s 2024 Exam Priorities Signal Tighter Regulation

In a year marked by regulatory scrutiny and enforcement actions against the crypto industry, the US Securities and Exchange Commission (SEC) shows no signs of slowing down.  The SEC’s Division of Examinations recently unveiled its 2024 priorities, signaling a potential tightening of regulations for crypto exchanges, firms, and cryptocurrencies falling under the SEC’s definition of […]

2023-10-18 01:00


US Court Defies SEC Interpretation Of Crypto, XRP Lawyer Weighs In

Regulators are still figuring out how to oversee crypto, but some recent judicial rulings show promise for the industry’s legal battles with the US Securities and Exchange Commission (SEC). Bill Morgan, an attorney representing Ripple in its protracted legal battle with the SEC, has been vocal about the evolving judicial stance on crypto. His recent comments underline […]

2023-9-1 21:00


Crypto Regulation Or Overreach? SEC’s Warning Draws Mixed Reactions

The US Securities and Exchange Commission (SEC) has issued a dire warning to accounting firms conducting audits in the crypto asset space. In a statement released on July 27, SEC Chief Accountant Paul Munter expressed concerns about the potential for misleading information to be presented to investors through non-audit work, which he argued is not […]

2023-7-29 22:00


Opinion: Binance sued by SEC, an inevitable but ominous day for crypto

Key Takeaways The world’s biggest cryptocurrency exchange was sued by the SEC Monday Binance and its CEO Changpeng Zhao have fired back, denying any wrongdoing Our Head of Research, Dan Ashmore, looks into what it all means for crypto, and who is to blame In a development that surprises precisely nobody, the SEC is suing […] The post Opinion: Binance sued by SEC, an inevitable but ominous day for crypto appeared first on CoinJournal.

2023-6-7 15:38


US Chamber of Commerce sides with crypto industry, blasts SEC

The U.S. Chamber of Commerce has sided with Coinbase and the crypto industry, blasting the Securities and Exchange Commission (SEC) over its regulatory approach. In a May 9 court filing, the advocacy group presented several critical arguments about how the SEC deliberately muddied the waters by claiming sweeping authority over digital assets — while deploying […] The post US Chamber of Commerce sides with crypto industry, blasts SEC appeared first on CryptoSlate.

2023-5-12 13:30


Ôîòî:

Crypto turmoil hasn’t impacted the wider financial system: SEC commissioner

US Securities and Exchange Commission (SEC) Commissioner Hester Peirce says the crypto sector is “too small” as it is to impact the broader financial system. In an interview with Bloomberg Surveillance on Thursday, the crypto-friendly SEC official also explained that regulators cannot decide on a regulatory approach just “based on price.

2022-7-29 23:41


äàëüøå åùå 77 íîâîñòåé →

Ïàðòíåðû Currencies.ru

Ðåêëàìà íà Currencies.ru

Ñàìîå ñâåæåå íà Currencies.ru

U.S. Regulation Round-Up: Politicians Faceoff Against Crypto Bosses

U. S. regulation of crypto assets is an ongoing issue for current politicians. This month, Capitol Hill played host to a watershed moment for crypto adoption in the U. S. Six executives from prominent crypto firms set out to demystify various aspects of their industry.