Blockchain Company Block.one Settles Charges for Unregistered ICO
By Attorney Jared Levy
The Securities and Exchange Commission recently settled charges against Block.one for allegedly making an unregistered initial coin offering (ICO) of digital tokens that raised several billion dollars. The blockchain technology company paid a $24 million penalty to resolve the charges.
The SEC’s Order finds that Block.one conducted an ICO between June 2017 and June 2018, selling 900 million tokens and raising several billion dollars’ worth of digital assets. According to the SEC, Block.one did not register its ICO as a securities offering under federal securities laws, and it did not seek an exemption from the registration requirements.
Stephanie Avakian, Co-Director of the SEC’s Division of Enforcement, stated as follows: “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.”
Steven Peikin, Co-Director of the SEC’s Division of Enforcement, stated that “Block.one did not provide ICO investors the information they were entitled to as participants in a securities offering. The SEC remains committed to bringing enforcement cases when investors are deprived of material information they need to make informed investment decisions.”
If you participated in Block.one’s ICO, you may have legal recourse. Please contact the Morgan & Morgan Business Trial Group at 800-816-1031 for a consultation.
The Business Trial Group helps investors recover their monetary losses on a contingency basis. We are only paid if we successfully recover money for you. We have helped investors recover tens of millions of dollars of investment losses.
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