EOS parent Block.one has reached a settlement with the US Securities and Commission (SEC) over its unregistered token sale. Block.one will have to pay $24 million in penalties for the EOS Initial Coin Offering (ICO). The ICO, which was conducted between 2017 and 2018, had made headlines since it raised $4.1 billion. The fine is a paltry 0.006% of the total amount raised.
In the official SEC press release, Steven Peikin, Co-Director of the SEC’s Division of Enforcement said, “Block.one did not provide ICO investors the information they were entitled to as participants in a securities offering. The SEC remains committed to bringing enforcement cases when investors are deprived of material information they need to make informed investment decisions.”
The press release further stated that Block.one violated the registration provisions of the federal securities laws.
Block.one also published a blog on its website where it stated that it is happy to resolve these discussions with the US securities regulator. The company stated, “We are excited to resolve these discussions with the SEC and are committed to ongoing collaboration with regulators and policymakers as the world continues to develop more clarity around compliance frameworks for digital assets.”
According to the press release, Block.one consented to the order without admitting or denying its findings. Incidentally, Block.one had launched the decentralised social network Voice on the EOS network earlier this year.
(Image Credit: Block.one Website)