The United States Securities and Exchange Commission (SEC) has accused a cryptocurrency issuer of making “false and seriously misleading statements” about an unregistered ICO from August 2017 to January 2018, following the frenzy during the recent bull market.

Loci Inc., the platform behind LOCIcoin and its CEO John Wise, was officially fined Tuesday. The SEC claims that Loci and Wise misled investors about the company’s revenue, headcount, and user base during a $ 7.6 million crowdsale. The regulator also claims that Wise misused $ 38,163 received from investors for personal expenses.

John Wise – CEO Loci Inc.

Kristina Littman, head of the SEC Enforcement Network Unit said:

“Loci and its CEO have misled investors about important aspects of loci’s business.”

“Investors in digital stocks enjoy honest information and full disclosure so they can make informed investment decisions.”

The order also requires Loci and Wise to pay a civil penalty of $ 7.6 million for their violation.

Introducing fines against crypto companies is nothing new to US authorities. Regulators from the SEC, the Commodity Futures Trading Commission (CFTC), and the Financial Crimes Enforcement Network (FinCEN) have fined more than $ 2.5 billion on crypto-related companies since 2014, adding to the cloudy regulatory atmosphere surrounding digital Highlights assets.

Elliptic Enterprises, a UK-based blockchain analytics firm, reported a $ 2.5 billion fine Tuesday for a range of violations including fraud, unregistered securities sales and non-compliance with anti-money laundering regulations.

The bulk of the $ 1.69 billion fines were imposed by the SEC, followed by $ 624 million from the CFTC, $ 183 million from FinCEN and $ 606,000 from OFAC. This includes $ 722 million in civil penalties, $ 1.62 billion in restitution, and $ 161 million in restitution.

Cryptocurrencies are referred to by many as the wild west of the financial world. Tens of thousands of crypto-focused projects were launched after Bitcoin’s Genesis block in early 2009. Many of these companies started in 2017 during the height of the ICO boom.

ICOs enable crypto startups to raise millions of dollars without having to meet the strict regulations of more traditional securities offerings. ICO funding hit tens of billions in 2017 and 2018 and attracted unwanted attention from securities regulators. The SEC has successfully civilized the founders of several crypto companies, which logically put an end to the mania – at least in the US.

Annie

According to Cointelegraph

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