Block.One will pay SEC $ 24 million for unregistered ICO EOS

Block.One, the company behind the development of the EOS blockchain, agreed to pay a fine of $ 24 million at the request of the US Securities and Exchange Commission (SEC) for violations in conducting ICOs.

Block.One conducted an initial token offering (ICO) from June 2017 to June 2018 and raised more than $ 4 billion at the exchange rate at the time of closing. SEC representatives noted that the company did not register the ICO as a sale of securities, although “a significant number of American investors took part in Block.One ICO.” According to Stephanie Avakian, one of the directors of the SEC enforcement department, Block.One has violated the securities laws and therefore has to pay a fine.

“Block.One did not inform investors that they became participants in the offer of securities. SEC remains confident that it is necessary to initiate legal proceedings in cases where investors do not receive the important information that they need to make informed and informed investment decisions, ”said Steven Peikin, another SEC Director.

A statement has appeared on the Block.One website
that the company is pleased to successfully complete the proceedings at the SEC. The company emphasized that it will continue to work with regulators.

Interestingly, against the backdrop of the statement about the fine, the EOS cryptocurrency grew by 6.54% against the background of the correction of the top of the whole market.

This summer, Weiss Ratings, a financial research company, lowered
EOS rating due to “serious centralization blockchain problems”.