Categories: ICO

SEC Hits Crypto Asset Fund and ‘ICO Superstore’ With Penalties

Click here to view original web page at www.coindesk.com

The U.S. Securities and Exchange Commission (SEC) said Tuesday that it has charged and reached agreements with two companies and their owners that operate in the cryptocurrency space.

The securities regulator alleged that Crypto Asset Management LP (CAM) and its principal, Timothy Enneking, had marketed itself under false pretenses, alleging that Enneking raised more than $3 million in late 2017 and claimed that the company was "the first regulated crypto asset fund in the United States."

According to the SEC statement, Enneking and the company agreed to the SEC's sec-and-desist order and pay a penalty of $200,000, without admitting or denying the agency's findings. Enneking didn't immediately respond to a request for comment.

Although this isn't the first time the SEC has ordered cease-and-desist letters to companies operating in the crypto space, it is the first to come that found fault with registration statements made by a cryptocurrency investment company.

Separately, the SEC accused TokenLot LLC and its owners, Lenny Kugel, and Eli L. Lewitt, of acting as unregistered broker-dealers. The agency said that TokenLot "received orders from more than 6,100 retail investors and handled more than 200 different digital tokens, which the SEC found included securities."

As in the case of CAM, Kugel, Lewitt and TokenLot didn't agree to or deny the SEC's findings, but agreed to pay $471,000 in disgorgement plus $7,929 in interest.

Lewitt and Kugel will also pay $45,000 each in penalties and "agreed to industry and penny stock bars and an investment company prohibition with the right to reapply after three years."

"The penalties in this case reflect the prompt cooperation and remedial actions by TokenLot, Kugel, and Lewitt," Steven Peikin, co-director of the SEC's Enforcement Division, said in a statement.

Notably, their deal with the SEC also states that they will find "an independent third party to destroy TokenLot's remaining inventory of digital assets." How this process will play out is unclear at this time.

Both the SEC orders referenced its 2017 DAO report, which paved the way for a series of SEC enforcement actions against alleged fraudsters in the ICO ecosystem. At the time, the agency said that securities law in the U.S. could apply to token sales.

Since then, senior officials at the SEC, including its chairman Jay Clayton, have made ICOs a significant priority for the agency.

SEC emblem image via Shutterstock

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

The securities […]

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Bitcoin Price Fumbles Under $10,000 as Traders Fear $8K Target

Bitcoin price is trading below $10,000 and a further pullback could drive price even lower. | Source: Shutterstock By CCN… Read More

3 hours ago

Mark Carney’s Dollar-Killer Digital Currency Threatens Bitcoin

Mark Carney, governor of the Bank of England (BOE), has a plan to challenge the dollar's dominance. | Source: Photo… Read More

3 hours ago

Crypto Funds Are Outperforming – You Shouldn’t Be Surprised

Josh Gnaizda is the founder of Crypto Fund Research . It’s one of the worst-kept secrets in the alternative investment… Read More

3 hours ago

FTC Settles With Promoters of Multi-Level Marketing Crypto Scheme

The U.S. Federal Trade Commission (FTC), has settled charges it filed last year against four promoters of crypto-denominated multi-level marketing… Read More

3 hours ago

Ethereum moves closer to Istanbul hard fork as Geth and Pantheon merge all improvement protocols

While Ethereum is on its way to shifting from Proof-of-Work to Proof-of-Stake, the developer community is currently engaged with the… Read More

3 hours ago

Binance Research: Too early to rule out Ethereum blockchain competitors

Binance Research, the market research and analysis arm of Binance, has published a report on tokenization and the key factors… Read More

3 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More