SEC accuses startup Loci of selling unregistered digital assets

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

The SEC's official statement stated that during the periodFrom August 2017 to January 2018, Wise raised $7.6 million through the sale of the unregistered LOCIcoin token and used more than $38,000 of that amount for his own expenses. By doing so, he violated the Securities Exchange Act of 1934 and the Securities Exchange 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.

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Based on materialswww.theblockcrypto.com