By Block.one is heaving a sigh of relief after recent announcements by the Securities and Exchange Commission (SEC). Block.one was being investigated for conducting an unregistered initial coin offering (ICO) by the SEC. The Securities and Exchange Commission (SEC) announced on Monday that it has settled charges against blockchain builder Block.one as Block.one has agreed to pay a penalty of $24M.
What was the issue about?
Securities and Exchange Commission as the investigating regulator informed that Block.one did not register its ICO as a securities offering. They further informed that “a number of US investors participated in Block.one’s ICO,”. Stephanie Avakian, co-director of the SEC’s Division of Enforcement said; SEC found that Block.one violated the securities laws and hence they ordered the penalty of $24M.
Securities and Exchange Commission further quoted that “Block.one did not provide its ICO investors the information they were entitled to as participants in a securities offering,” These statements were made by another co-director of the Division of Enforcement as the SEC, Steven Peikin.
He Quoted further:
“The SEC remains committed to bringing enforcement cases when investors are deprived of material information they need to make informed investment decisions.”
What happened actually?
Block.one is the company behind the EOS blockchain, it conducted an ICO between 2017 to 2018 in which it raised $4.1 billion.
Statements from Block.one
Block.one issued a statement on its website shortly after the announcement of $24M penalty by Securities and Exchange Commission (SEC).
“We are excited to resolve these discussions with the SEC and are committed to ongoing collaboration with regulators and policy makers as the world continues to develop more clarity around compliance frameworks for digital assets.”
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