Block.one to Pay $24 Million to Settle SEC Charges over Unregistered ICO

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SEC Order unregistered ICO

Block.one, a blockchain software company, reached a settlement agreement with the Securities and Exchange Commission (SEC) regarding its unregistered initial coin offering (ICO) between June 2017 and June 2018.

Under the settlement, Block.one agreed to pay $24 million in civil penalty to resolve the SEC’s complaint specifically related to the ERC-20 tokens sold on the Ethereum blockchain during its ICO.

At the aforementioned period, the software blockchain company sold 900 million tokens and raised several billion dollars from investors. Its ICO was conducted shortly after the securities regulator published its DAO Report of Investigation.

The report warned that a virtual organization also known “The DAO” offering and selling digital assets using distributed ledger or blockchain technology is subject to the requirements under the federal securities laws.

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 Block.one violated securities laws

Any company such as Block.com is required to register its ICO with the SEC. Conducting and participating in an unregistered ICO is a violation of the securities laws.