EOS fined $ 24 million after raising $ 4 billion of unregistered ICO

The US Securities and Exchange Commission has reached an agreement with the company behind one of the largest first coin offerings of 2017 and 2018, Block.one. EOS has raised a total of $ 4 billion and the company will pay a fine of $ 24 million for running an unregistered ICO.

Block.one pays a $ 24 million fine

The SEC has reached an agreement with EOS’s inventor, Block.one. According to the agency, the company has to pay a $ 24 million fine for running an unregistered ICO. This is because ICOs are considered securities offerings and EOS has not requested an exemption from the registration requirements.

Block.one has not provided investors with the information they were entitled to as a participant in securities offers, according to the SEC’s enforcement department co-director Steven Peikin. Stephanie Avakian, another co-director, said:

A number of US investors participated in Block.one’s ICO. […] Companies that offer or sell securities to US investors must comply with securities laws regardless of the industry in which they operate or the labels they put on the investment products they sell.

Block.one has agreed to pay the fine without allowing or disapproving the government’s findings.

What now?

Unfortunately, the SEC has not provided any clarification as to whether the issued token represents a security or not, but has determined that the process qualifies for its issuance as a security offer.

It is therefore unclear whether or not EOS itself is a guarantee in the eyes of the Commission. However, the SEC’s decision has certainly raised a lot of questions within the cryptocurrency community.

Number one, of course, concerns the size of the fine. EOS raised around $ 4 billion during its token sale and the fine is $ 24 million. From a different perspective, one could say that Block.one’s ROI was 16,500%.

One thing is for sure: EOS is pumping the news. In the past 24 hours, the price of EOS is up 9% after falling above $ 3.

EOS / USD. Source: TradingView
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