March 29, 2024

SEC fines BCOT $ 250,000 for illegal ICO

SEC fines BCOT $ 250,000 for illegal ICO

The US Securities and Exchange Commission (SEC) imposed a fine of $250,000 on Blockchain of Things Inc. (BCOT) forsale of unregistered tokens through an initial coin offering (ICO). The SEC also ordered the company to return funds to all of its investors.

During the ICO, held in December 2017, BCOT raised almost $13 million. However, like most projects, it did not have a working model.

According to company representatives, the mainplatform task – allow third-party developers to create applications for transmitting and logging messages, generating digital assets, and transferring digital assets.

The US regulator alleges that the company was involved in the sale of unregistered securities between US investors.

[The company] hired four "intermediaries"who acted as the exclusive sellers of BCOT digital tokens in foreign countries, distributing the tokens without restrictions to investors in the United States, – the ad says.

The SEC also indicated that the company was required to register an ICO in accordance with federal securities laws, as it did not have the right to exempt from registration requirements.