SEC Penalties Levied on ICO Superstores, CryptoAsset Fund
The security regulators of the SEC have found that Timothy Enneking, head of Crypto Asset Management LP, issued a fake pretext. It is said that his company proclaimed to be the first crypto regulator of asset funds in the US and based on this claim, he has raised more than $3 million last year.
In a statement, SEC regulators have confirmed that Enneking accepted the desist orders issued, as well as the penalty of $200,000 without countering his involvement in the fraudulent activity.
Cease Letter for Organizations
Apart from Enneking, SEC also issued letters against TokenLot LLC owners Eli L. Lewitt and Lenny Kugel. The firm proclaimed themselves as the Initial Coin Offering Superstore and eventually gained nearly 6000 retail investors' orders, and was dealing with 200 different crypto tokens.
Just like CAM, the owners of TokenLot even agreed to pay a penalty of $471,000 along with an interest fee of $7,929. Lewitt and Kugel didn’t accept nor deny the accusations made by SEC.
Besides the penalty paid as a company, both Lewitt and Kugel will be required to pay a penalty of $45,000 each. They have also accepted to return to the cryptomarket only after three years as stated in the regulations set by investment company prohibition and penny stock bar and industry clauses.
Another clause accepted by Lewitt and Kugel state that they will join hands with a third party to destroy the remaining inventory crypto assets of their firm.
The orders issued for the companies issued by the SEC strengthens the DAO report, and paves SEC’s way to enforce actions against the fraudulent activists in the ICO sphere.