By way of example, in this sponsored CryptoGurus video, the Shipchain ICO is often referred to as an investment.
The sponsored video goes on to note that the “returns if Shipchain is successful could be very impressive.” Then the video explains “Token sale details for those of you listening that want to invest in this” and gives potential “investors” direction of a soft cap and hard cap for the “raise” of money.
Previously Forbes took this article down about Shipchain that touted it as the “next biggest thing since the internet.” It was discovered that the article was paid for but not properly disclosed to readers.
Would the SEC constitute this type of promotion of an ICO as a security?
The South Carolina Attorney General’s office previously took an action against Shipchain, however there were no South Carolina residents connected to the purchase of the ICO in South Carolina and therefore it is believed the AG office dropped the action due to no nexus to the state.
The South Carolina Attorney General went on to state in it’s order “It does not and should not be interpreted to waive any future causes of action which may be brought as a result of any securities activities of the Respondant (Shipchain), whether detailed in the Administrative Order to Cease & Desist or Not.”
