SEC Is Still Going After These 2017 Ethereum Token ICOs

After Block.one was fined $24 million in 2019 for its initial $4 billion coin offering from EOS and subsequently missed the $1.2 billion Telegram ICO in 2020, the Securities and Exchange Commission has issued more life support-based coin offerings. went back to choosing small projects. Agency, Loci Inc. and CEO John Wise of fraud and conducting the unregistered sale of securities of LOCIcoin in 2017 and 2018. Loci and Wise paid the fees and agreed to destroy their tokens and remove them from exchanges, according to the SEC. . and never offer digital assets again. They also have to pay a fine of $7.6 million, the value of the Ethereum tokens they receive for sale. SEC Crypto Crackdowns Highest $1.7B Fines: Report Loci Positions Itself as “IP Discovery, Creation and Exchange Platform”. Running on the Ethereum blockchain, the LOCIcoin token will reportedly be used to subscribe and bid on intellectual property on the company's patent research software platform, InnVenn. The token is currently trading at $0.003, with a fully diluted market cap of just $295,000 according to Etherscan data. Most LOCI trading takes place via peer-to-peer trading on Bancor's decentralized exchange; It is not listed on the main trading platforms like Binance. Per the SEC's shutdown order, Loci and CEO John Wise assured investors that the token "will have a minimum value of $2.49, which could increase as demand for InnVenn grows." Loci and Wise's promises ultimately constituted fraud in the eyes of the SEC. He claimed that marketing materials depicting customers and sales were "substantially false and misleading", "because Loci never had sales, revenue, or paid users." Even though the company had sales and paid users, the agency still pleaded guilty for not registering its ICO as a security offering. Securities are financial instruments that can be bought and sold by securities.

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