September 20, 2020

SEC will force Block.one to pay $ 24 million fine

SEC will force Block.one to pay $ 24 million fine

The US Securities and Exchange Commission (SEC) reached an agreement with Block.one to pay a fine of 24 million US dollars related to unregistered initial coin offering (ICO).

On September 30, the SEC announced in a press release that it had settled the lawsuit with Block.one. Block.one agreed to pay a fine, but refused to admit or refute the allegations.

Raising funds, Block.one has not registered an ICO as a securities offer in accordance with US federal law and has not filed an exemption from registration requirements. Stephanie Avakyan, Director of Compliance, stated:

Companies that offer or sell valuablesecurities investors in the United States must comply with securities laws regardless of the industry in which they operate, or on what they call the proposed product.

The SEC also accuses the company of failing to provide its investors with the information necessary to make informed investment decisions.

A fine of $ 24 million will not have a significant impact on the company, since it is only a small fraction of the revenue from the sale of tokens, which amounted to $ 4 billion.

According to the materials cointelegraph.com