The U.S. Security and Exchange Commission (SEC) has ruled that startup Enigma MPC violated federal securities laws when it conducted the ENG token ICO. The company must refund investors and pay a fine.
SEC DECLARES ENG TOKENS AS SECURITIES
The ICO took place in November, 2017 and raised approximately $45 million dollars. ENG is an Ethereum token that, like many, quickly saw its value skyrocket only to decline quickly within weeks. In the SEC press release the agency states that the company must establish a process by which customers can receive compensation.
John T. Dugan, Associate Director for Enforcement in the SEC’s Boston Regional Office states:
All investors are entitled to receive certain information from issuers in connection with a securities offering, whether it involves more traditional assets or novel ones . . . The remedies in today’s order provide ICO investors with an opportunity to obtain compensation and provide investors with the information to which they are entitled as they make investment decisions.
The company is cooperating and will pay a fine of $500,000. None of Enigma MPC’s executives appear to be facing criminal charges. Also, unlike others, the ENG token ICO does not appear to have been a deliberate scam.
Although not a top traded cryptocurrency, ENG’s price has not fallen on the news. It currently ranks #120 on Coinmarketcap.com with a market value of $38 million.
IMPACT ON THE CRYPTO SPACE COULD BE HUGE
The question over whether or not blockchain assets represent securities is both complex and controversial. In the United States, different federal agencies have taken opposing positions, and politicians have yet to issue clear guidance. This step by the SEC thus represents a bold move as the agency is now taking a clear stand on the matter.
Adding to the confusion on this topic is the fact that current regulations may apply differently to specific blockchain platforms. For example, some experts assert that Bitcoin does not qualify as a security, yet Etherum does.
There is no doubt that this issue must soon be resolved, as a new wave of ICOs is all but certain to take place in the coming months. Perhaps the most logical approach will be for lawmakers to recognize that cryptocurrency represents a new asset class, and that laws designed for the legacy financial space are inadequate to clarify this question.
Given the number of ICOs that took place in 2017 under the same circumstances as ENG, it is reasonable to assume that more SEC rulings will soon take place.
What do you make of the SEC’s decision to sanction Enigma? Add your thoughts below!
Images via Shutterstock origin »
Concerning a $40.7-million coin offering, the Securities and Exchange Commission (SEC) has announced charges against two companies and its Australian founder.
In a release today, the regulator puThe post SEC cracks down on another 'fraudulent' ICO issuer for 'misleading' investors appeared first on AMBCrypto.
The United States' Securities and Exchange Commission [SEC] has long been involved in the cryptocurrency space. Back in 2017, the SEC had clamped down on Initial Coin Offerings and termed them as "illThe post SEC Commissioner Hester Peirce claims her proposal's guardrails will protect investors appeared first on AMBCrypto.
Telegram’s cryptocurrency that was scheduled for release in October, 2019 might be delayed after the project suffered a lawsuit setback filed by the SEC. The digital asset which goes by Telegram Open Network (TON) has been under development for over a year and the news came as shock to both the team and investors. Telegram […]
The SEC has taken abrupt action to halt the Telegram token sale just weeks before the company planned to launch its ‘Gram’ token. The crowdsale, which raised over $1.7 billion from institutional and accredited investors in the form of SAFT agreements, may have constituted the sale of an unregistered digital token offering.
The SEC continues to crack down on any token offerings or initial coin offerings which may violate securities laws. The latest victim in this crusade is Telegram Group Inc. Their TON tokens raised US$1.
The U. S. Securities and Exchange Commission is in discussions with the alleged fraudulent firm Virataseum. Sec announced off into a dialogue with CEO Reginald Middleton before the pre-trial conference for a possible settlement of the $15 million illegal token sales.
The Bitcoin ETF proposal and the question of whether it will get the SEC’s approval has been one of the key talking points of 2019. Several Bitcoin ETF proposals have been submitted to the SEC by institutions such as VanECK Securities, SolidX Management and Bitwise, but none of them have received any positive response, as […]
The post Bitcoin ETF ensures secure access to BTC for regular investors: Bitwise Exec appeared first on AMBCrypto.
Recently, American Internet retailer Overstock. com became the subject of a securities class action lawsuit from stockholder Benjamin Ha. The 61-page complaint stated that Overstock, its CEO and CFO, intentionally withheld information from investors and the Securities and Exchange Commission (SEC).
As of today, there are several Bitcoin financial products targeting institutional Wall Street investors, be it Bitcoin futures contracts offered by CME and Bakkt, or Over The Counter (OTC) trades, with the SEC already considering a host of ETF proposals as well.
The SEC has obtained a final judgment against PlexCoin’s fraudulent ICO and its proprietors, finding the defendants in the case guilty for violating antifraud provisions of Federal security laws.
The United States securities regulator has announced hefty fines for two crypto companies. The penalties have been imposed for EOS’ unregistered token sale and a fraudulent public offering.
The US regulator achieved a settlement with the developer of the blockchain platform EOS. Now Block One will pay $24 million for selling unregistered securities to investors.
Ripple has been fighting a now year-old lawsuit and recently, a group of investors had filed an amended complaint regarding the same against Ripple. The group had alleged that XRP was an unregistered security under the Securities and Exchange Commission’s (SEC) guidance.
Bitcoin won’t be traded on real exchanges like Nasdaq or New York Stock Exchange any time soon — or so says US Securities and Exchange Commission chairman Jay Clayton. At a conference earlier today, Clayton maintained that Bitcoin needs stronger regulation before that happens, and until then, investors should remain wary, CNBC reports.
SEC Chairman Jay Clayton said that Bitcoin needed to be strongly regulated before it could be traded on a major exchange. He also warned investors to be wary of their investment in the digital asset until those regulatory changes are put in place.
The price of bitcoin surged by $5,000 on April 2, a 23 percent jump that many believe was sparked by an article published on April Fool’s Day. Its title was “SEC drops the Bomb: Approves Bitcoin ETFs.
Primarily targeting institutional investors, VanEck and SolidX are reportedly selling a “limited version” of a bitcoin exchange-traded fund (ETF) after every bitcoin ETF proposal has been rejected by the Securities and Exchange Commission (SEC) to date.
Two investment companies whose Bitcoin ETF proposals have been delayed by the SEC have found a way around the tight regulations. In a joint statement, VanEck Securities Corp. and SolidX Management said they planned on launching a “limited version” of the BTC ETFs, only available to accredited investors.
VanEck Securities and SolidX Management announced plans to launch an institutional-grade Bitcoin exchange-traded funds (ETF) for accredited institutions such as hedge funds, banks, etc. The Bitcoin ETF will not be available to retail investors yet.
Crypto traders and investors in Thailand woke up to an unpleasant surprise this morning as the Kingdom’s leading digital asset exchange announced that it was closing down. Limited Options For Thai Crypto Traders In an official announcement today, Thai SEC regulated BX crypto exchange stated that it would be discontinuing digital asset trading services at the end of the month.
The US’ top financial watchdog has settled with Dallas-based blockchain startup Bitqyck Inc. over allegations it fraudulently sold shares of company stock to more than 13,000 buyers of its Bitqy cryptographic token.
The U.S. Securities and Exchange Commission (SEC) has recently announced that it would settle the charges related to Bitqyck, a cryptocurrency token issuer which was accused of being a fraud. The two founders of the company, Sam Mendez and Bruce Bise, raised $13 million USD selling the tokens of their company to over 13,000 investors. […]
The Securities and Exchange Commission (SEC) announced pressing charges against Bitqyck Inc. and its founders for defrauding investors in securities offerings of two digital assets and operating an unregistered exchange.
The Thai Securities and Exchange Commission‘s (SEC), the financial watchdogs of the country have warned the citizens about a new form of investing scam. I this scam, a false entity who is pretending to be a regulated legal digital currency trading firm accosts traders into investing with it. Lt Co Woranan Silam who is a […]
Markets have taken a turn for the worse as North American investors reacted to the SEC’s latest pronouncements for future token sales. Based on their latest movements, regulators will continue to treat all token sales as likely securities for the foreseeable future.
A group of investors has filed a complaint against Ripple with the Securities and Exchange Commission (SEC) for dumping illegal securities on investors in the token, as reported by Forbes, August 18, 2019.
Coinspeaker Ripple Faces Another Lawsuit from Investors Claiming XRP Is an Unregistered SecurityRipple continues to face the ire of the investors who claim that XRP is "unlawful securities" under the SEC's guidelines of the Howey Test.
The SEC again postponed its decision on three of the most prominent Bitcoin exchange-traded fund applications this Monday, including those proposed by Bitwise Asset Management, VanEck-SolidX, and Wilshire Phoenix The U.
In a recently amended complaint filed against Ripple, investors have cited guidelines from the Securities and Exchange Commission to argue that they were duped into purchasing unregistered securities when they bought XRP.
The U.S Securities Exchange Commission (SEC) filed a complaint against Veritaseum founder, Reginald Middleton, for defrauding investors during the ICO launch of VERI tokens in April to May 2017. In a post released by research firm, Hindenburg Research, the commission will further charge two companies – New York registered, Veritaseum Inc. and Delaware registered, Veritaseum […]
According to the official website of the Zambian SEC, investors are discouraged from dealing with self-proclaimed cryptocurrency advisors and “experts”. Over the course of the past couple of years, a number of crypto/blockchain scams have emerged from Africa.
As a deluge of regulatory measures looms on the horizon of the nascent crypto markets, many analysts and investors alike have been quick to plead with regulators to not regulate the markets with the stroke of a broad brush, and to rather take a case-by-case approach.
The Securities and Exchange Commission of Zambia has issued a caution to the public to beware of scammers operating cryptocurrency investment advice services. The financial regulators received information about a company called KWAKOO that was pushing an initial coin offering with dubious future price predictions.
Gladius ICO has repeatedly failed to honor investor agreements and has cut off communication, even within their community, prompting many to term it a scam.
Ethereum (ETH) is down 3. 2 percent Omar Reyes, a candidate vying for a Congress seat in Florida, wants to issue an Ethereum token Props, an ERC-20 token, is compliant with a key regulation. As a result, investors can have a financial stake in the issuing company following SEC qualification.
Coinspeaker SEC Approves YouNow’s Ethereum Token ‘Props’ With a Reg A+ RewardThe SEC has approved YouNow’s Ethereum token enabling investors to use an alternative investment method to acquire a financial stake in companies through participating in community developing engagements.
The US Securities and Exchange Commission has given approval to blockchain startup Blockstack to hold a public sale of its Stack tokens. Investors will be able to use Stack tokens as currency on the Blockstack network.
By CCN Markets: YouNow, a live video streaming startup, has filed a public offering circular with the U. S. SEC for a native cryptocurrency called the Props token. The company is not looking to sell this digital asset to investors; instead, they want to distribute it and are seeking compliant ‘mining’ of Props in the U.
It appears that encrypted-messaging app Telegram is finally going forward with the public sale of its Gram tokens, as announced in a press release on June 11, 2019. This comes after the messaging app initially canceled its earlier public ICO plan, amid a firestorm of SEC clampdown on the funding mechanism.
In 2017, the explosion of initial coin offerings (ICOs) – a new fundraising method where startups could issue tokens in exchange for early capital they otherwise wouldn’t have access to – helped fuel the crypto mania alongside Bitcoin’s meteoric rise.
The U. S. Securities and Exchange Commission (SEC) has sued messaging app Kik over their 2017 ICO for its KIN token. Officials allege that the ICO constituted an unregistered securities offering.
In a turn everyone should’ve seen coming, the US Securities and Exchange Commission (SEC) is suing messaging app Kik for its initial coin offering (ICO). In court documents released yesterday, the SEC outlined that Kik’s sale of one trillion “Kin” tokens was not registered with the SEC.
Add “Hawk Tuah Girl” to the list of cryptocurrency investigations that the U.S. Securities and Exchange Commission is no longer interested in pursuing. Haliey Welch, who gained fame as the “Hawk Tuah Girl” in a viral video, has announced that…
CRO rallied as high as 17% after the US SEC formally concluded its investigation into Crypto. com. However, most of these gains were quickly erased amid broader market uncertainty. According to crypto.
Комиссия по ценным бумагам и биржам США (SEC) отказалась от исков против криптокомпаний Kraken, ConsenSys и Cumberland.
Судебные документы о прекращении производства подали 27 марта.
Without pursuing any enforcement action, the U.S. Securities and Exchange Commission has formally concluded its investigation into Crypto.com. In a blog post on Mar. 27, the exchange revealed the news, pointing out that it had previously received a Wells notice…
Paul Atkins was picked by Donald Trump in December 2024 as the replacement for Gary Gensler as U.S. SEC chair. Due to bureaucracy-related delays, Atkins has yet to begin work. However, a recently published financial disclosure ahead of his confirmation…
The next crypto roundtable discussion will take place on April 25, with the others following on May and June 6 Mary Uyeda is acting chair at the US Securities and Exchange Commission (SEC) Paul Atkins’ confirmation as SEC chair has been delayed due to paperwork issues The US Securities and Exchange Commission (SEC) will host […]
The post US SEC to hold four more crypto roundtable discussions appeared first on CoinJournal.
The U.S. Securities and Exchange Commission’s Crypto Task Force will host four public roundtables over the next three months to discuss key issues in cryptocurrency regulation. The SEC announced on its official website on Mar. 25 that these sessions, which…
