- Blockchain startup block.one will settle with the Securities and Exchange Commission for $US24 million to resolve allegations of conducting an unregistered initial coin offering.
- The company allegedly sold cryptocurrency tokens to investors without adhering to securities laws, and didn’t provide investors with disclosures they were entitled to, the SEC said in a statement.
- Block.one is “committed to ongoing collaboration with regulators and policy makers,” the company said in a statement. The company neither admitted nor denied the agency’s findings.
- Visit the Business Insider homepage for more stories.
Blockchain startup block.one will settle with the Securities and Exchange Commission for $US24 million after being charged with conducting an unregistered initial coin offering.
The company, which has operations in Virginia and Hong Kong, held an ICO between June 2017 and June 2018, according to an SEC statement. The offering landed in the midst of the crypto boom, and the startup brought in “several billions of dollars” in the 900 million coin offering, including a portion from US investors. The tokens issued were sold on the Ethereum blockchain, according to block.one.
Block.one didn’t register its ICO as a securities offering and didn’t seek an exemption from relevant laws, the agency noted.
“Block.one did not provide ICO investors the information they were entitled to as participants in a securities offering,” SEC Division of Enforcement co-director Steven Peikin said. “The SEC remains committed to bringing enforcement cases when investors are deprived of material information they need to make informed investment decisions.”
The crypto startup noted it is “committed to ongoing collaboration with regulators and policy makers” as digital assets grow in popularity around the world. Block.one neither admitted nor denied the agency’s findings.
“We will continue to fight for the development of our industry to achieve as much alignment around policy and best practices as possible,” the company said in a statement.
The SEC began a greater look at ICOs and cryptocurrencies in 2017, as the deals often fell outside of existing securities laws. Cryptocurrency offerings have slowed as regulation increased and coin prices plummeted from their record highs in December 2017.
Now read more markets coverage from Markets Insider and Business Insider:
Business Insider Emails & Alerts
Site highlights each day to your inbox.