The US' Securities and Exchange Commission (SEC) has slapped a $24 million penalty on cryptocurrency company Block.one for conducting an unregistered initial coin offering (ICO). The company was fined for selling unregistered ERC-20 tokens between June 2017 and July 2018. Block.one said that it accepted the settlement while “neither admitting nor denying” the SEC’s findings. ERC-20 is a protocol that defines certain rules and standards for issuing tokens on the Ethereum's blockchain. What did the SEC find? SEC’s investigation found out that Block.one raised “several billion dollars” as part of its ICO, but the company said that it would use the capital for general expenses, and also to develop software and promote blockchains based on that software. However, Block.one did not register its 900 million-token offering as securities in accordance with the federal securities laws, nor did it qualify for or seek an exemption from the registration requirements, the SEC said. “Block.one did not provide ICO investors the information they were entitled to as participants in a securities offering,” said Steven Peikin, Co-Director of the SEC’s Enforcement Division. How much capital did Block.one raise? The SEC’s order doesn’t specify how much capital Block.one raised following its ICO. But according to a CNBC report, the company raised $4 billion even before its token went live. This means that the fine on Block.one is a mere 0.006% of its ICO. What did Block.one say? In a statement, the company said that since its ERC-20 token is no longer in circulation it will not…
- How much money was seized by the Indian state while investigating illegal loan apps? February 8, 2023
- Publishers Aren’t ‘Intermediaries’, IT Ministry Says: What Does This Mean for India’s Online Gaming Laws? February 8, 2023
- You can now use PhonePe UPI to pay in UAE, Singapore, Nepal and Bhutan February 8, 2023
- Wikipedia ‘Unblocked’ in Pakistan, PM Forms A Committee To Regulate ‘Objectionable’ Content February 8, 2023
- Explained: What is the feud over ownership between Binance and WazirX? February 8, 2023
MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.
India's smartphone operating system BharOS has received much buzz in the media lately, but does it really merit this attention?
After using the Mapples app as his default navigation app for a week, Sarvesh draws a comparison between Google Maps and Mapples
The regulatory ambivalence around an instrument so essential to facilitate data exchange – the CM framework – is disconcerting for several reasons.
The provisions around grievance redressal in the Data Protection Bill "stands to be dangerously sparse and nugatory on various counts."
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
Twitter takes down tweets from MP, MLA, editor criticising handling of pandemic upon government request
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...