The United States securities regulator and governor has recently announced hefty fines for a couple of crypto companies. Penalties have been levied against EOS following it’s and registered token sales in a fraudulent public offering. The securities and exchange commission, SEC intends to use some of the collected money to underwrite investors who’ve suffered damages.
On Monday the SEC published an announcement that made it public that Block.one, which is a leading blockchain technology company has agreed to pay a fine of up to USD 24 million in order to settle the charges leveled against it. Block.one stands accused of conducting unregistered initial coin offering that saw it raise about several billion dollars worth of digital assets cutting across a period of one year.
The company operates within the United States’ state of Virginia and Hong Kong and sold 900 million digital assets between June 2017 and June 2018 during the initial coin offering boom period, as per the securities and exchange commission. It intended to use the raised capital to cover general expenses and also to cover the financial part for the development and promotion of new software and blockchain solutions.
Stephanie Avakian, the co-director of the securities and exchange commission’s division of enforcement, noted that a number of Americans did participate in the initial coin offerings. She says, “companies that offer or sell securities to U.S investors must comply with the securities laws irrespective of the industry they are operating in or the labels they place on the investment products they offer.”
Another co-director of the enforcement division of the SEC, Steven Peikin, gave details revealing that the entity did not indeed provide investors with the information that they were required by law to have given them. The official was quoted as saying, “the SEC continues to be committed to persuing enforcement charges when investors are denied of material information they need to make informed investment decisions. “
The commission also revealed that block.one violated the provisions of registration of the federal securities laws and asked the title company to pay the fine of USD 24 million. The commission pointed out also that block.one did move to consent to the order without admitting or denying any findings that led to its issuance.
The securities and exchanges commission has also fined Longfin to the tune of USD 6.8 million. This penalty comes following accusations of fraud within the crypto company and with the commission citing that it had managed to obtain a fraudulent judgment against longfin corporation and its chief executive officer. The judgment was passed by a new York court judge.