FOLLOW US

a. Transfer all SHIP tokens in its possession or control, including within the control of the company’s directors, to the Fund Administrator (which is referenced in paragraph IV.E. below) within 10 days of receiving notice of the Fund Administrator’s appointment, to enable the Fund Administrator to permanently disable such SHIP tokens.

b. Publish notice of the Order on ShipChain’s website and social media channels, in a form not unacceptable to Commission staff, within 10 days of the date of this Order.

c. Take reasonable steps to convey this Order to digital asset trading platforms that, to its knowledge, offer trading of SHIP tokens and request the removal of SHIP tokens from the platforms, and publish notice of such requests on ShipChain’s website and social media channels, in a form not unacceptable to Commission staff, within 10 days of the date of this Order.

In determining whether to accept the Offer, the SEC considered ShipChain’s current financial condition and the fact that ShipChain has decided to cease all operations, and that the penalty represents substantially all of ShipChain’s net assets.

Shipchain is to shut down, return money to investors, and pay a $2,050,000 fine to the Securities Exchange Commission.

Pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended by the Dodd-Frank Act of 2010 [15 U.S.C. § 7246(a)], a Fair Fund has been created for the penalty above.   The Commission will appoint a Fund Administrator who will develop a distribution plan (the “Plan”) and administer the Plan in accordance with the Commission Rules on Fair Fund and Disgorgement Plans.

The Fair Fund shall be used to compensate harmed investors for losses resulting from the violations determined herein. Any amount remaining in the Fair Fund after all distributions have been made shall be transmitted to the U.S. Treasury.

Down goes Shipchain, and it appears there is more trouble for its founder John Monarch on the horizon.

The Cryptocurrency Bitcoin Blackmail Trial

It is alleged that in 2013 John Monarch used cryptocurrency bitcoin to blackmail businessman Richard Gorman (who has a financial interest in the USA Herald and helped contribute to this article.  Gorman also worked with the SEC to help bring action against Monarch for the alleged Shipchain ICO scam that Monarch operated).

Monarch, shortly before admitting to destroying key evidence in the case, pointed his finger at his alleged co-defendant (unnamed) in an attempt to shift the full blame of the blackmail.