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SEC attacks again; strikes down two Ethereum based projects

Priya

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SEC attacks again; strikes down two Ethereum based projects
Source: Unsplash

Earlier this week, the Securities and Exchange Commission made the headlines by striking down the Founder of EtherDelta, a decentralized exchange platform that offers services for Ethereum-based tokens. This had grabbed the attention of several people involved in the space as it was the first time a Founder was scrutinized by the SEC. This also sent across a strong message to the entire community, i.e., the developer will always be responsible for their innovation.

Now, the SEC is back in the limelight, striking down two ICOs at the same time. The projects that were targeted by the SEC are Paragon Coin Inc. and CarrierEQ Inc [Airfox], both of which are Ethereum based and the ICOs were conducted in the year 2017.

The commission claims that the ICO was conducted after they released a report on their investigation of DAO aka Digital Decentralized Autonomous Organization, the main reason for the split of the Ethereum blockchain. The commission added that according to the DAO report, ICOs can be classified as securities offering.

Additionally, Airfox raised around $15 million worth of cryptocurrencies for the development of their project. The project pitched by the team during the ICOs was creating tokenized ecosystem that enables users to earn tokens and exchange the tokens for data. Whereas, Paragon raised $12 million worth of cryptocurrencies for the development of a product i.e, introducing the blockchain technology in the cannabis industry.

Since both the ICOs were not registered under the Federal securities laws, the SEC has imposed a penalty of $250,000 each against both the companies. Moreover, they are required to compensate “harmed investors” who took part in the ICO and also file a report with the SEC on a periodic basis for at least a year.

Stephanie Avakian, co-director of the SEC’s Enforcement Division said:

“We have made it clear that companies that issue securities through ICOs are required to comply with existing statutes and rules governing the registration of securities. These cases tell those who are considering taking similar actions that we continue to be on the lookout for violations of the federal securities laws with respect to digital assets.”

Steven Peikin, co-director of the SEC’s Enforcement Division stated:

“By providing investors who purchased securities in these ICOs with the opportunity to be reimbursed and having the issuers register their tokens with the SEC, these orders provide a model for companies that have issued tokens in ICOs and seek to comply with the federal securities laws.”





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Priya is a full-time member of the reporting team at AMBCrypto. She is a finance major with one year of writing experience. She has not held any value in Bitcoin or other currencies.

Bitcoin

Bitcoin’s censorship resistance, freedom make it a game changer in the economic industry

Biraajmaan Tamuly

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Bitcoin's censorship resistance, freedom makes it a game changer in the economic industry
Source: Pixabay

Over the years, the global economic industry has witnessed significant changes. However, no change has been more significant or essential than the one introduced by the concept of virtual assets or Bitcoin. Today, Bitcoin and other virtual currencies are almost as essential as fiat money and despite the fact that digital assets have not reached worldwide adoption, the pace of growth has been substantial.

In a recent panel discussion, Jedidiah Taylor, CEO and Founder of Decent.Bet, the smart contract-based sports betting platform, stated that the idea of Bitcoin and blockchain technology projected a perspective of freedom and honesty which allowed individuals to have direct control over their own capital, without any oversight supervision from financial institutions.

The sentiment was followed by Nico De Jonghe, Founder and CEO of NDJ Investment Group, who added that the threat of decentralized assets loomed the largest over centralized institutions like banks, who were worried of the future prospects offered by Bitcoin and its impact on the long-term financial situation.

Tone Vays, a reputable analyst and Bitcoin proponent, opined and stated that Bitcoin’s biggest strength was the fact that it was completely “unconfiscatable” and that one’s BTC is completely safe if it is protected and secured with attention. The characteristic of censorship-resistant value transfer is also an absolute game-changer for Bitcoin, allowing it to competitively exist in the financial system.

The value of Bitcoin has often been criticized in the past, but its valuation has consistently proven its worth. In fact, Bitcoin has grown by more than 150 percent in 2019.

At press time, Bitcoin was priced at $11,371, with a market capitalization of over $202.18 billion. The staggering valuation of an asset that was unheard of 10 years ago, further underlines the potential of Bitcoin in the current market scenario and for the future economies.





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