The SEC collected $1.26 billion from unregistered ICOs in 2020
In a record-breaking year, the SEC seized $4.68 billion — more than one-quarter of which came from cryptocurrency-related firms. The Enforcement Division of the U.S. Securities and Exchange Commission (SEC) has collected more than $4.68 billion in illegal income and fines this year so far — with more than one quarter coming from Telegram’s ill-fated Gram’s token sale alone.In total around $1.26 billion was handed over to the SEC by unregistered initial coin offerings (ICOs). SEC Division of Enforcement Director Stephanie Avakian stated:"The Commission obtained judgments and orders totaling....
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ICOs are revolutionary for business, though the fear of being scammed keeps investors at a distance. Using blockchain technology, initial coin offerings have become an alternative means of acquiring funding for business projects using the new, evolving digital financial market for tokens. In contrast to initial public offerings, which are governed by strict legal regulations, ICOs require only a white paper and some interesting features, such as a lack of barrier to entry, a scope for exponential growth, absence of geographical barriers and easy validation. Hence, it may not be surprising....
Liquidity mining is a marked and significant improvement over the investment mechanisms of ICOs, but is it here to stay? By the end of 2018, many crypto skeptics had their “I told you so” moment, as many initial coin offerings, or ICOs, failed to deliver on their promises. Between 2017 and 2018, 3,250 projects were launched via ICO and $21.4 billion was collected from investors. But by early 2018, a study revealed that nearly half of 2017’s ICOs had failed — with another 13% considered “semi-failed” — dealing financial blows to coin purchasers anticipating gains. Many projects achieved....
Initial DEX offerings have a fair bit in common with initial coin offerings but come out on top in cost, effort, and fairness. Initial DEX offerings are the new initial coin offerings. So, what’s the difference between an IDO and an ICO, other than that one letter? A lot actually. In some ways, ICOs and IDOs have more in common with each other than they do with initial exchange offerings, which have more than a few features of the traditional initial public offering of stock markets.While IDOs and IEOs are both listed directly on exchanges — decentralized exchanges, or DEXs, in the case of....
You may have missed it in 2016, but initial coin offerings, or ICOs, have become the dominant way to fund new cryptocurrency projects. In an ICO, a project sells part of the total token supply to early adopters in exchange for money with which to progress. ICOs have two primary benefits: they provide funding to the team to see the project through, and incentivize a community to contribute (who gain if the project succeeds and the tokens are worth more than they bought them for). Although 2016 witnessed a high number of ICOs, they are not a new phenomenon and some ICOs from earlier than....
A new report from Elliptic has found that unregistered securities offerings account for more than half of all crypto-related fines handed out by U.S. regulators. According to a report from blockchain analytics firm Elliptic, unregistered securities offerings represent more than half of all crypto fines handed out by U.S. regulators. In Elliptic’s June 21 Sanctions Compliance in Cryptocurrencies report, the firm's co-founder and Chief Scientist, Dr. Tom Robinson writes that U.S. regulators have handed out $2.5 billion in fines for crypto-related violations since 2014. Out of the total $2.5....