Everscale Partner
The US Securities and Exchange Commission (SEC) announced the settlement of claims regarding the unregistered sale of tokens of a New York startup Blockchain of Things Inc (BCOT).
The Commission’s press release states that the BCOT is required to stop activities that violate federal securities laws. Representatives of the company agreed to pay a fine of $ 250,000, while they did not admit or refute their guilt.
BCOT managed to raise $ 13 million as a result of an unregistered ICO, which launched in December 2017. The money had to go to create a blockchain platform with which third-party developers could create applications for sending messages, issuing digital tokens and transmitting them.
According to the SEC, the company is obliged to return the illegally received money to investors. In addition, BCOT will have to register its tokens as securities in accordance with the Law on Securities Trading, and also from time to time to transfer necessary information to regulators.
“Investors did not receive information from BCOT that they should have received in connection with the sale of securities,” said Carolyn Welshhans, deputy director of the SEC enforcement department. “We will continue to take the necessary measures to protect investors, similar to this order.”
