Blockchain News

Blockchain Firm Block.one Pays Penalty of $24 Million to Settle SEC Charges

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Blockchain firm, Block.one is paying the penalty for the allegations of the unlicensed sale of USD ICO (Initial Coin Offering) tokens. The SEC (Securities and Exchange Commission) had fined a penalty of $24 million to settle the charges.

The EOS blockchain network developer, Block.one settled the concerns related to the selling of ERC-20 tokens through the Ethereum network from June 26, 2017, to June 1, 2018. Block.one traded unregistered 900 million tokens before the DAO investigation report by the SEC.

The co-director of the Enforcement Division of SEC, Stephanie Avakian, said that many US investors participated in ICO of Block.one. Avakian said that the company which offers securities to the US investors should follow security laws. Despite that, the company is working on the labels of the investment products they are offering.

The co-director of the Enforcement Division of SEC, Steven Peikin, said that while providing securities to the participants, Block.one did not offer entitled information to the ICO investors. The SEC is committed to bringing up enforcement cases at the time when investors have no clue about the information to make investment decisions.

For Block.one, this settlement is a victory. The company declared that they are happy to resolve the disputes with the SEC and are dedicated to collaborating regulators and policymakers to produce more clear frameworks for digital assets.

On the other hand, SEC has simple rules and regulations. According to the SEC, the companies dedicated to providing securities or investments to the people of the US should follow the laws of the US government.

Block.one claimed that the ERC-20 token would not be circulated, and there is no requirement to register the token as security with SEC. There will be no existence of ERC-20 token because, in the EOS network, the Ethereum token changed to native tokens.

Blockchain helps in aligning the organizations with its customers, increasing the visibility of infrastructure of the database, better value for distribution, etc. Block.one is dedicated to fighting for the achievement of alignment of possible policies and practices.

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