$250k Fine Slapped On New York-Based Blockchain Firm For Unlawful ICO

A settlement has been reached between Blockchain of Things Inc. (BCOT) and the United States Securities and Exchange Commission (SEC). This is for playing out an unlawful and unregistered initial coin offering (ICO).

Earlier this week, the securities commission revealed in a press post that such charges were settled in the form of an order that needs to blockchain company to ‘cease and desist’ from committing any kind of violation of the registration provision of the federal securities laws. A quarter of a million-dollar fine was issued to the New York-based company too, which they agreed to pay, despite not admitting or denying the findings. 

The SEC went onto add, that the company will also need to “register its tokens as securities pursuant to the Securities Exchange Act of 1934 and will file required periodic reports with the Commission.”

The securities commission found that the blockchain firm failed to register its coin offering in accordance with federal securities laws. On top of this, it didn’t qualify for an exemption from registration requirements either. 

Carolyn Welshhans, the associate director of the SEC’s Division of Enforcement highlighted:

“BCOT did not provide ICO investors with the information they were entitled to receive in connection with a securities offering. We will continue to consider appropriate remedies, such as those in today’s order, to provide investors with compensation and required information and to provide companies who conducted unregistered offerings with an opportunity to move forward in compliance with the federal securities laws.”

It will be interesting to see the future of the company from here. For more news on this and other crypto updates, keep it with CryptoDaily!