More sanctions: SEC fined CoinAlpha $50,000
The US regulator fined another crypto company for an unregistered issue of securities. This time, CoinAlpha got caught in a crossfire.
According to the Securities and Exchange Commission, the CoinAlpha crypto fund was created in October 2017. It found private investors and offered them to invest in digital assets. In total, CoinAlpha managed to raise over $600,000 from 22 investors.
But, according to the regulator, the fund has not registered own issuing of securities. CoinAlpha filed an exception with the rules to the SEC, but the Commission did not consider the fund was subject to it. In addition, CoinAlpha did not conduct the KYC test properly.
As the result, the SEC fined the fund $50,000. Plus, CoinAlpha should refund the money to investors and not repeat violations in the future.
- In mid-November, SEC fined two startups — Airfox and Paragon Coin — for an unregistered securities issuing. The startups must pay $250,000 each.