July 24, 2021

SEC accuses startup Loci of selling unregistered digital assets

SEC accuses startup Loci of selling unregistered digital assets

US Securities and Exchange Commission accused John Wise and his company Loci Inc of selling unregistered digital assets and misleading investors.

The SEC said in an official statement that during the periodBetween August 2017 and January 2018, Wise raised $ 7.6 million through the sale of an unregistered LOCIcoin token and used more than $ 38,000 of that amount for his own expenses. Thus, he violated the Securities Exchange Act of 1934 and the Securities Act of 1933.

The head of the digital division of the SEC said:

Loci and its CEO misled investors byabout many aspects of the company's business. Investors in digital assets and securities must receive truthful information in order to make informed investment decisions.

Wise and other Loci representatives have not yet commented on the matter. In the event of an admission of guilt, the company's management will have to pay a fine of $ 7.6 million.

Subscribe to ForkNews on Telegram to keep abreast of news from the world of cryptocurrencies

According to the materials www.theblockcrypto.com