[ad_1]
Just yesterday, on 16 November, the Securities and Exchange Commission (SEC) issued a statement announcing that it had resolved the allegations against two companies that carried out ICO transactions subject to offerings of securities. In the announcement, the SEC explained that both companies have agreed to return funds to damaged investors and to register their tokens as securities. The two companies should also submit periodic reports to the Commission and pay penalties.
The two Ico
The two companies mentioned by the SEC are CarrierEQ Inc. (Airfox) and Paragon Coin Inc. Both of these companies carried out ICO operations in 2017. Airfox collected an estimated value of $ 15 million in digital assets while Paragon raised approximately $ 12 million.
Stephanie Avakian, co-director of the SEC Enforcement Division, had this to say about the two companies and the status of ICOs in the United States.
We have made it clear that companies that issue securities through ICO are required to comply with the statutes and existing regulations governing the registration of securities.
These cases tell those who are considering the adoption of similar actions that we continue to be seeking violations of federal securities laws regarding digital assets.
SEC advises ICOs to comply with federal securities laws
Steven Peikin, Co-Director of the SEC Enforcement Division, added the following about how ICOs should proceed with their funding activities:
By providing investors who purchase securities in these ICOs the opportunity to be repaid and the issuers register their tokens with the SEC, these orders provide a model for companies that have issued tokens in ICOs and seek to comply with federal laws on titles.
Penalty from the SEC
The two companies were fined $ 250,000. The two companies will also compensate for the damaged investors who bought tokens in illegal offers. They will also register their tokens under the Securities Exchange Act of 1934 and submit periodic reports with the Commission for at least a year.
Airfox and Paragon have agreed to comply with the SEC's orders without admitting or denying the results.
What are your considerations on the two international organizations responsible for registering their tokens as titles? Let us know in the comments section below.
