SEC states that the ICOs Paragon and AirFox have to refund $12 million and $15 million respectively to investors. The two companies sold digital tokens in initial coin offerings but violated securities offering registrations. Both companies agree to return funds to harmed investors and register the tokens as securities instead of utilities.
According to the SEC’s orders, both CarrierEQ Inc. (Airfox) and Paragon Coin Inc. conducted ICOs in 2017. They raised money through ICOs even though the commission warned startups to follow regulation, according to the report of Investigation. Airfox, a Boston-based startup, raised approximately $15 million worth of digital assets. They raised the money to finance its development of a token-denominated ecosystem. Starting with a mobile application that would allow users in emerging markets to earn tokens and exchange them for data. Paragon, an online entity, raised approximately $12 million worth of digital assets to develop and implement its business plan. Neither Airfox nor Paragon registered their ICOs under the federal securities laws. Nor did they qualify for an exemption to the registration requirements.
Read my full article here: https://toshitimes.com/secs-new-ruling-could-send-many-crypto-icos-to-bankruptcy/
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://toshitimes.com/secs-new-ruling-could-send-many-crypto-icos-to-bankruptcy/
Source
Hello! Welcome to Steemit.
In order to prevent identity theft, identity deception of all types, and content theft we ask users that have an online identity, post for a website or blog, are creators of art and celebrities of all notoriety to verify themselves.
Any reasonable verification method is accepted. Examples include:
Private or temporary verification is available. Contact a member of our team on Discord
In order to confirm your authorship of the content, please make a mention about Steemit or add a hyperlink to Steemit on your website/social media account:
Thank you.
More Info: Introducing Identity/Content Verification Reporting & Lookup &
Identity & Content Verification Guide: When to Ask and When Not To
Congratulations @dennissahlstrom! You received a personal award!
You can view your badges on your Steem Board and compare to others on the Steem Ranking
Vote for @Steemitboard as a witness to get one more award and increased upvotes!