SEC Fines ‘Blockchain of Things Inc.’ $250 for Lack of Registration
According to several public sources, Blockchain of Things Inc. (BCOT), will have to pay $250K penalty to the United States Security Exchanges (SEC) on a case of constituting an unregistered token sale.
Reportedly, that the firm in 2017 has raised around $13 million by conducting an ICO and as part of SEC, the sale was conducted to sell unregulated and unregistered cryptocurrencies. Accordingly, SEC on Wednesday settled charges against Blockchain of Things Inc. (BCOT) by imposing $250,000 penalty which will be refunded back to investors who participated/invested in the token sale.
According to the official report, SEC’s order against BCOT required the firm to cease and desist from violating the registration provisions of the federal securities laws. Furthermore, the firm has to undertake the process to return the funds to ICO token purchasers who request a return of the funds. Besides, the firm is agreed to register its tokens as securities and abide by the rules of SEC in according to the Securities Exchange Act of 1934.
SEC’s Division of Enforcement, Carolyn M. Welshhans explains:
“BCOT did not provide ICO investors with the information they were entitled to receive in connection with a securities offering, said Carolyn M. Welshhans. We will continue to consider appropriate remedies, such as those in today’s order, to provide investors with compensation and required information and to provide companies who conducted unregistered offerings with an opportunity to move forward in compliance with the federal securities laws.”
Allegedly, the company was aware of the SEC’s warning towards ICO projects but ignored someway and managed to raise millions, but regulators have the bird’s-eye view of the crypto industry. SEC finally caught BCOT and settled charges against it. SEC also ordered that the firm has to submit periodic reports with the commission to which “BCOT consented without admitting or denying the findings”.
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