The US Securities and Exchange Commission (SEC) has reached an agreement with the company behind one of the largest initial coin offerings in 2017 and 2018, Block.one. EOS raised a total of $ 4 billion and the company will pay a fine of $ 24 million for conducting an unregistered ICO.
Block.one pays a $ 24 million fine
The SEC has reached a settlement with EOS creator, Block.one. According to the agency, the company has to pay a $ 24 million fine for conducting an unregistered ICO. This is because ICOs are considered securities offers and EOS has not applied for an exemption from registration requirements.
Block.one has failed to provide investors with the information they were entitled to as a participant in security offers, according to co-director of the SEC’s Enforcement Division Steven Peikin. Stephanie Avakian, another co-director, said:
A number of US investors participated in the Block.one ICO. […] Companies that offer or sell securities to US investors must comply with securities laws regardless of the industry in which they operate or the labeling of the investment products they offer.
Block.one has agreed to pay the fine without admitting or denying the government’s findings.
What now?
Unfortunately, the SEC has not made any clarification as to whether or not the issued token represents a security, but has determined that the process for its issuance qualifies as a security offering.
It is therefore unclear whether or not EOS is itself a security in the eyes of the Commission. However, the SEC’s decision has certainly raised many questions within the cryptocurrency community.
Number one, of course, concerns the size of the fine. EOS raised around $ 4 billion during the token sale and the fine is $ 24 million. From a different perspective, one could say that Block.one’s ROI was around 16,500%.
In any case, one thing is clear: EOS really accelerates. In the past 24 hours, EOS is up 9% in price after breaking above $ 3 again.
EOS / USD. Source: TradingView
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