[news] EOS Maker Block.One Settles With SEC Over Unregistered Securities Sale

[bbc.reporter]

I am literally shaking my head. What is this? It appears that the settlement is really a payment for Block One and EOS to continue on without liabilities from the American government.

I predict more payments from other projects to the SEC to continue hehehe.

In any case, is this a silent surrender made by the SEC because they cannot stop the ICOs? Has the cryptospace won?


Dan Larimer, the tamer of SEC


EOS maker Block.One must pay $24 million in penalties for conducting an unregistered securities sale, the U.S. Securities and Exchange Commission (SEC) announced Monday evening.

The SEC said in a press release that Block.One “raised the equivalent of several billion dollars” over a one-year period in an unregistered initial coin offering (ICO). (A total of $4.1 billion was raised.) Block.One agreed to settle the charges, according to the SEC.

The fine amounts to 0.58 percent of the initial raise.

Notably, the press release highlighted that Block.One’s token sale began shortly before the SEC released its DAO Report but “continued for nearly a year after the report’s publication.” The company did not secure an exemption from securities registration requirements and did not otherwise register the sale, the SEC said.

In its own press release, Block.One said the settlement only applies to the sale of the original ERC-20 token it sold. EOS holders swapped their ethereum-based tokens with the proper EOS tokens when the network first went live.

More significantly, Block.One’s statement said that its ERC-20 token is no longer in circulation “and will not require the token to be registered as a security with the SEC.”

Read in full https://www.coindesk.com/eos-maker-block-one-settles-with-sec-over-unregistered-securities-sale

[bbc.reporter]

They are paying the fee voluntarily to continue developing their projects undisturbed. I speculate that the scam ICOs will never settle and they are beginning to formulate their exit scam plans. Wait for those news articles hehehe.



Boston-based Nebulous, makers of the Sia network for decentralized data storage, has settled with the U.S. Securities and Exchange Commission (SEC) over an unregistered securities offering and conversion scheme.

In a blog post Tuesday, the company announced the settlement without admitting fault. It will pay disgorgement of $120,000, prejudgment interest of $24,602 and a civil money penalty of $80,000. At the time of the 2014 token sale, Nebulous raised approximately $120,000.

The Sia settlement comes just a day after the announcement of Block.One’s $24 million settlement with the SEC for the EOS maker’s $4.1 billion securities sale.

Source https://www.coindesk.com/sia-reaches-225k-sec-settlement-over-120k-unregistered-token-sale

[Tipstar]

Is that even in the rule book? Or that's just a bribe?
Anyway, it has set a precedent for ICOs and ICOs in US to sell tokens legally? This will enable more projects to go through ICO and with the US investors could potentially boost the whole crypto market? Do we even have precedent in the US?

[bbc.reporter]

@Tipstar. It appears more like a fee demanded by the SEC to let past and present ICOs continue their projects. For future ICOs, we do not know. The SEC might stop it, however, how can the SEC do it unless they shutdown the platform hosting the ICO?

[fudster]

Dan had finally break their spirits.

All other projects that did an ICO and will do an ICO soon can just settle by paying the SEC, wonderful. There wouldn't be the need to hide after all. Its time to celebrate and enjoy the ICO once again. No need for IEO if theyre just going to do it with blockone.