RATE Group | Cryptocurrency Startup to Pay $24 Million in SEC Settlement
63768
post-template-default,single,single-post,postid-63768,single-format-standard,ajax_fade,page_not_loaded,,qode_grid_1300,side_area_uncovered_from_content,footer_responsive_adv,qode-content-sidebar-responsive,qode-child-theme-ver-1.0.0,qode-theme-ver-13.3,qode-theme-bridge,wpb-js-composer js-comp-ver-7.9,vc_responsive
 

Cryptocurrency Startup to Pay $24 Million in SEC Settlement

01 Oct Cryptocurrency Startup to Pay $24 Million in SEC Settlement

Posted at 05:39h in Cryptocurrency News by

[ad_1]

A startup behind one of the largest initial coin offerings of the past several years will pay $24 million to resolve a U.S. regulator’s allegations that its deal violated federal investor-protection laws.

The civil settlement announced Monday represents one of the biggest fines since the Securities and Exchange Commission began a crackdown on ICOs in 2017. SEC officials say many such deals evaded federal securities laws because the coin issuers didn’t provide investors with required disclosures meant to inform them about a business’s finances and operations.

Block.one, a software company whose officers are mostly based in Hong Kong, capitalized on the hype in cryptocurrencies when it sold 900 million tokens in 2017 and 2018, raking in billions of dollars. That a little-known startup could raise so much without a concrete plan for the proceeds underscored the allure of assets that looked as though they could become the next bitcoin.

Unlike in…

[ad_2]

Source link

Tags:
, , , , , ,