April 25, 2024

SEC fines $ 24 million EOS project for unregistered ICO

The developer of Block.one agreed to pay a fine, which is less than 1% of the $ 4.1 billion raised during the initial token placement.

United States Securities and Exchange Commission (SEC)fined Block.one, an EOSIO blockchain developer, for $ 24 million for an unregistered ICO. According to the financial regulator, the company violated federal laws on securities and did not apply for exemption from registration requirements.

“Companies that offer or sell valuablesecurities to American investors must comply with the relevant laws, regardless of the industry in which they operate, or the names that they give to their investment products, ”the SEC emphasized.

Block.one did not admit or dispute her guilt, but agreed to pay a fine. Its size does not exceed 1% of the $ 4.1 billion that the company raised during the ICO to develop its own blockchain.

On the Block.one website, it is reported that the SEC claims relate to the ERC20 token that was distributed during the crowdsale. At the moment, he does not apply and does not trade on exchanges.