SEC Forces Crypto Company to Return ICO Funds to Investors

SEC Forces Crypto Company to Return ICO Funds to Investors
фото показано с : bitcoinist.com

2020-2-20 01:00

The U.S. Security and Exchange Commission (SEC) has ruled that startup Enigma MPC violated federal securities laws when it conducted the ENG token ICO. The company must refund investors and pay a fine. SEC DECLARES ENG TOKENS AS SECURITIES  The ICO took place in November, 2017 and raised approximately $45 million dollars. ENG is an Ethereum token that, like many, quickly saw its value skyrocket only to decline quickly within weeks. In the SEC press release the agency states that the company must establish a process by which customers can receive compensation. John T. Dugan, Associate Director for Enforcement in the SEC’s Boston Regional Office states: All investors are entitled to receive certain information from issuers in connection with a securities offering, whether it involves more traditional assets or novel ones . . . The remedies in today’s order provide ICO investors with an opportunity to obtain compensation and provide investors with the information to which they are entitled as they make investment decisions. The company is cooperating and will pay a fine of $500,000. None of Enigma MPC’s executives appear to be facing criminal charges. Also, unlike others, the ENG token ICO does not appear to have been a deliberate scam.  Although not a top traded cryptocurrency, ENG’s price has not fallen on the news. It currently ranks #120 on Coinmarketcap.com with a market value of $38 million.  IMPACT ON THE CRYPTO SPACE COULD BE HUGE The question over whether or not blockchain assets represent securities is both complex and controversial. In the United States, different federal agencies have taken opposing positions, and politicians have yet to issue clear guidance. This step by the SEC thus represents a bold move as the agency is now taking a clear stand on the matter. Adding to the confusion on this topic is the fact that current regulations may apply differently to specific blockchain platforms. For example, some experts assert that Bitcoin does not qualify as a security, yet Etherum does.  There is no doubt that this issue must soon be resolved, as a new wave of ICOs is all but certain to take place in the coming months. Perhaps the most logical approach will be for lawmakers to recognize that cryptocurrency represents a new asset class, and that laws designed for the legacy financial space are inadequate to clarify this question.  Given the number of ICOs that took place in 2017 under the same circumstances as ENG, it is reasonable to assume that more SEC rulings will soon take place. What do you make of the SEC’s decision to sanction Enigma? Add your thoughts below! Images via Shutterstock

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Bitcoin & Company Network (BITN) на Currencies.ru

$ 3.4E-5 (-0.68%)
Объем 24H $0
Изменеия 24h: 7.68 %, 7d: 5.02 %
Cегодня L: $3.4E-5 - H: $3.4E-5
Капитализация $0 Rank 3624
Цена в час новости $ 0.0047919 (-99.29%)

sec investors ico company federal when conducted

sec investors → Результатов: 126


SEC Commissioner Hester Peirce claims her proposal's guardrails will protect investors

The United States' Securities and Exchange Commission [SEC] has long been involved in the cryptocurrency space. Back in 2017, the SEC had clamped down on Initial Coin Offerings and termed them as "illThe post SEC Commissioner Hester Peirce claims her proposal's guardrails will protect investors appeared first on AMBCrypto.

2020-2-7 19:00


Bitcoin ETF ensures secure access to BTC for regular investors: Bitwise Exec

The Bitcoin ETF proposal and the question of whether it will get the SEC’s approval has been one of the key talking points of 2019. Several Bitcoin ETF proposals have been submitted to the SEC by institutions such as VanECK Securities, SolidX Management and Bitwise, but none of them have received any positive response, as […] The post Bitcoin ETF ensures secure access to BTC for regular investors: Bitwise Exec appeared first on AMBCrypto.

2019-10-8 18:30


Фото:

Thailand’s Top Crypto Exchange Closes its Doors Unexpectedly, Sells BTC For $9k

Crypto traders and investors in Thailand woke up to an unpleasant surprise this morning as the Kingdom’s leading digital asset exchange announced that it was closing down. Limited Options For Thai Crypto Traders In an official announcement today, Thai SEC regulated BX crypto exchange stated that it would be discontinuing digital asset trading services at the end of the month.

2019-9-2 13:00


Bitqyck Crypto Exchange Settles with SEC on Charges About Committing Token Sale Fraud

The U.S. Securities and Exchange Commission (SEC) has recently announced that it would settle the charges related to Bitqyck, a cryptocurrency token issuer which was accused of being a fraud. The two founders of the company, Sam Mendez and Bruce Bise, raised $13 million USD selling the tokens of their company to over 13,000 investors. […]

2019-8-30 22:11


SEC Of Thailand Warns Crypto Investors About Latest Scam Using Non-Authorized Exchanges

The Thai Securities and Exchange Commission‘s (SEC), the financial watchdogs of the country have warned the citizens about a new form of investing scam. I this scam, a false entity who is pretending to be a regulated legal digital currency trading firm accosts traders into investing with it. Lt Co Woranan Silam who is a […]

2019-8-26 16:41


Securities And Exchange Commission To Probe ICO Scam, Veritaseum, Once Valued At $950 Million

The U.S Securities Exchange Commission (SEC) filed a complaint against Veritaseum founder, Reginald Middleton, for defrauding investors during the ICO launch of VERI tokens in April to May 2017. In a post released by research firm, Hindenburg Research, the commission will further charge two companies – New York registered, Veritaseum Inc. and Delaware registered, Veritaseum […]

2019-8-13 18:21