SEC Punished Another Two ICOs
The SEC imposed fines against two crypto startups for not registering their tokens as securities. Now they have to pay $250,000 fine.
Two crypto startups - Airfox and Paragon Coin - conducted an ICO last year. The first managed to collect over $15 million, and the second - $12 million.
According to the SEC, they did not register ICOs as a securities offering. Moreover, the projects did not submit applications to the regulator so that he could consider them as an exception to the rules. The SEC launched an investigation and issued several measures against crypto startups. They must register their tokens as securities, return the money to investors, send reports to the regulator and pay a $250,000 fine each.
These two cases will serve as an example to those who are going to hold an ICO, according to the SEC. And the regulator will continue to monitor ICOs for compliance with the rules.