On Monday the US SEC (Securities and Exchange Commission) has announced that it has resolved claims against Block.one. It is an international software company that specializes in developing high-speed blockchain software. The company had claims of operating an initial coin offering (ICO) without registration. Now the blockchain maker has agreed to pay the penalty worth $24 million. Reportedly, Block.one has claims of selling an ERC-20 token between 26th June 2017 and 1st June 2018. The sale refers to the Ethereum blockchain during the above time period in which it has raised around 4.1 billion. Currently, the company does not deploy or trade in the ERC-20. Thus it will not need to register the token as a guarantee with the federal agency.
Even more, the company has announced the settlement news on its official website. Block.one announces it will pay the fine in a single shot. As per the company’s statement, the agreement will settle all ongoing matters between the two, i.e., the SEC and Block.one. Even more, Block.one states they are excited to settle these talks with the federal agency. Also, they are faithful and loyal to the ongoing concert with federal regulators. In the end, the company notes, as always, they feel proud and thankful for the community’s support that enables their every work.
Co-director of the SEC’s Division of Enforcement Stephanie Avakian said the SEC had noted Block.one did not enroll its ICO as a collateral offering. Despite that, various American investors had participated in the ICO of Block.one. As per Stephanie, the federal regulator has discovered that Block.one has breached the securities policies. Thus the SEC has ordered the penalty amount to the blockchain maker.
Steve Peikin, another co-director and Stephanie’s colleague, said Block.one had not notified ICO investors that they were attributable as participants in a securities offering. The executive noted, the SEC is bound to bring enforcement cases when investors are dispossessed of the essential information they need to beware while making investment decisions.