Published: 2018-11-02 20:08:53
SEC Shut Down More Than A Dozen Illegal ICOs In Past Year, According to Official Report

The United States Securities and Exchange Commission (SEC) has been able to bring over a dozen successful enforcement actions against the sale of illegal Initial Coin Offerings (ICOs) in the last fiscal year, which ended on September 30. The agency revealed this information on its official Annual Report from the Division of Enforcement.

From the “more than a dozen” ICOs that were finished by the U. S. SEC, three of them raised more than $68 million USD when combined. While the increase in the number was significant when it is compared to last year’s numbers, it is still just a small part of the $3.945 billion USD that the company raised in penalties in the year.

According to the report, the main cases that were targeted were the ones that had a significant impact in the market “beyond their own four walls”, meaning that the company was especially focused on products that could have a special impact in how the market works.

The explosion of ICOs, the report states, simply made too many targets for the SEC, so they had to concentrate on the most important ones. It was also informed that the new Cyber Unit of the SEC, created at the end of the 2017 fiscal year, was very important for chasing crimes that intertwined cyber issues and securities laws.

It was also affirmed that, while many of the cases pursued by the SEC have involved fraud, the new Cyber Unit is also focused on compliance and registration made in a proper way.

The Cyber Unit and the SEC Enforcement Division were also chasing startups and other companies that acted as unregistered broker-dealers in the market.

The views and opinions expressed in the article SEC Shut Down Over a Dozen Illegal ICO Token Sales In Past Year, Nearly $70 Million Raised do not reflect that of nor of its originally published source. Article does not constitute financial advice. Proceed with caution and always do your own research.

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