SEC Brings Down Hammer On Block.one

Blockchain company Block.one was slammed by a massive $24 million penalty, courtesy of Securities and Exchange Commission (SEC), according The Wall Street Journal.

The SEC began crackdowns on ICOs back in 2017, and this recent settlement comes in as one of the biggest the SEC has handed out.

Block.one was accused of attempting to avoid SEC’s security classification by merely avoiding registration as an ICO, according to CCN.

“A number of US investors participated in Block.one’s ICO… Companies that offer or sell securities to US investors must comply with the securities laws, irrespective of the industry they operate in or the labels they place on the investment products they offer,” according to a statement made by the SEC

Block.one seems to be relieved after releasing a statement that claimed, “The settlement resolves all ongoing matters between Block.one and the SEC. The SEC has simultaneously granted Block.one an important waiver so that Block.one will not be subject to certain ongoing restrictions that would usually apply with settlements of this type.”

This settlement seems to leave Block.one relatively unharmed, as they were able to raise an estimated $4.1 billion from fundraising efforts. This makes the $24 million dollar settlement a mere drop in the pond for Block.one

Related Articles