The Commission will later appoint a Fund Administrator to develop and supervise a plan of distribution for the Fair Fund and the disabling of SHIP tokens.
Investors are wondering if the Commission’s Enforcement Division will also pursue Shipchain’s advisors including Kevin Harrington for promoting the unlawful ICO. As a hands-on advisor, he played a key role in helping Shipchain develop and implement a strategy to attract and raise funds from investors.
Did Kevin Harrington receive compensation or some form of financial benefit for his promotion of Shipchain? Were Shipchain investors aware of Harrington’s compensation for the promotion of the Shipchain ICO? If not, the SEC Division of Enforcement may pursue him and seek penalties, disgorgements, and prejudgment interests just like it did with other celebrities and influencers for illegally promoting ICOs.
SEC punished celebrities for unlawfully promoting ICOs
In 2018, the SEC pursued and ordered Floyd Mayweather and DJ Khaled to pay penalties, disgorgements, and pre-judgment interests totaling $614,775 and $152,745 respectively for failing to disclose the payments they received for promoting the fraudulent Centra Tech ICO.
