Copy link
Increase text size
Decrease text size
Link copied

SEC charges Blockchain of Things $250,000 for ICO violation; Payment to be completed in the next 30 days

Blockchain startup Blockchain of Things will be paying the SEC a total of $250,000, with each payment divided into four segments at $62,500 each.

Fri, 20 Dec 2019, 10:39 am UTC

Tech startup Blockchain of Things (BCOT) has agreed to pay the Securities and Exchange Commission (SEC) $250,000 for its initial coin offering (ICO) that was launched in 2017. The payment will be divided into four segments, with each payout amounting to $62,500.

The SEC expects the company to pay the initial payment in the next 30 days, after which Blockchain of Things will subsequently submit the next three in the next 60, 90, and 120 days. Failing to follow this payment schedule will result in penalty interest.

The SEC has maintained that all ICOs are categorized as securities and are subject to registration to the regulatory body. Since Blockchain of Things didn’t register its 2017 ICO, the SEC filed a cease-and-desist order against the tech startup.

An expensive oversight

To dive deeper into the matter, BCOT entered an agreement with four resellers situated in Vietnam, Japan, South Korea, and the United Arab Emirates. Although these resellers were supposed to distribute the tokens only within their respective borders, BCOT didn’t enforce strict monitoring where the tokens are being sold.

“BCOT had no visibility into the Foreign Resellers’ token sales practices, such as what disclosures and representations were made by the Foreign Resellers to potential purchasers. BCOT also lacked any visibility into the identity of potential purchasers,” the SEC filing read.

SEC weeding out the crypto ecosystem

The SEC has been cracking down on these illegal ICO ever since the popularity of Bitcoin chuck the crypto industry into the mainstream scene. Just last week, the regulatory body charged Shopin’ founder Eran Eyal with defrauding investors after it launched an ICO that raised $42 million.

The money was supposed to fund the development of a blockchain-based shopper profile that can record a purchaser’s behavior and logged it on a digital ledger. Instead, Eyal spent $500,000 of the raised fund to support his lavish lifestyle.

Meanwhile, the SEC is also trying to get to the bottom of the Telegram case that’s been brewing for a while. The agency has already taken the deposition of two Telegram employees and is slated to acquire the statements of the company’s CEO on Jan. 7 or 8.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $8,814.16 (-5.75%)
  • Ethereum (ETH) $228.94 (-8.41%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $319.31 (-8.87%)
  • Bitcoin SV (BSV) $225.90 (-12.87%)
  • Bitcoin (BTC) $8,814.16 (-5.75%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft