The Securities and Exchange Commission (SEC) of the US is tightening the noose around initial exchange offerings (ICOs). In yet another step against them, the Commission has brought charges against one more allegedly fraudulent ICO of unregistered digital asset securities.
The SEC Is Getting Serious About ICOs
The SEC has pressed charges against defendants Sergii “Sergey” Grybniak and Opporty International, Inc. Per the complaint, the defendants Opporty and its sole owner, Grybniak, conducted a fraudulent, as well as unregistered initial coin offering of digital asset securities.
The tokens were called OPP Tokens and Grybniak managed to raise approximately $600,000 from around 200 investors who were located in the US and abroad.
As per the previous rulings of the SEC, a lot of the ICOs have been selling tokens which resembled securities. As such, they have to abide by the existing regulations when targeting US-based investors. In other words, ICOs have to be registered as securities offerings in order to deliver the necessary protections for those who get in. Failing to do so results in breaking the law and consequent charges. Read More...