SEC accuses rating agency icorating.com of concealing revenue from "paid ICO reviews."
According to the document, the SEC believes that the siteICORating violates the policy of "anti-advertising." In addition, the owners of the agency are accused of concealing information about profits received from the promotion of ICOs, many of which are classified as financial securities.
The law aims not only to punish the seller or creators, but also the portals that were involved in promoting sales. According to the SEC, any income requires proper disclosure to investors.
In turn, ICORating offered the regulator a monetary settlement. The total fine imposed by the SEC is $ 268,998.
Recently, the SEC has launched an aggressive fight againstICO, a fundraising mechanism, thanks to which many cryptocurrency startups managed to attract huge amounts of money during the bull rally 2017-2018.
This charge may also be levied on others.websites and exchanges that charge fees for reviews and top listings of ICO projects. Thus, fines, reimbursement and legal costs can easily close most projects. A similar example was witnessed with the Horizon State project in Australia, which led to the disappearance of Decision Token (HST).
However, there are ICOs that are tryingfight. And the Kik ICO case is the first project that tried to challenge the claims of the regulator. Consequently, while the SEC is successfully dealing with the suppression of ICOs, there are still some areas where the lack of regulatory guidance gives the ICO a chance to fight back.