Telegram’s token sale accounts for half of the U.S. fines since 2009
Telegram’s token sale accounts for half of US fines since 2009, according to a new report from Elliptic, as we read more in today’s breaking crypto news.
U.S. regulators have imposed massive fines on crypto startups, according to a new Elliptic report, but only one company is responsible for half of the fines paid to date. US regulators have fined crypto companies up to $ 2.5 billion since 2009, the majority of which came from lawsuits filed by the US Securities and Exchange Commission against cryptocurrency companies. The crypto industry has paid fines of $ 2.5 billion since BTC was invented 12 years ago.
According to Elliptic, U.S. regulators, primarily the U.S. Securities and Exchange Commission, have fined crypto companies and individuals for anything including fraud, selling unregistered securities, etc. Return dollars to investors and pay a civil penalty of $ 18.5 million. The SEC said the sale of Telegram tokens, which grossed $ 1.7 billion, was illegal because the company sold securities as investment contracts without registering the sale with the regulator.
Elliptic says the fines are evidence that regulators have regulated the industry. Dr. Tom Robinson, Co-Founder of Elliptic, said:
“Contrary to popular belief that the crypto asset industry is unregulated, US regulators are increasingly imposing substantial fines on crypto companies.”
Elliptic noted that the first major regulatory penalty was on the Ponzi program in 2014, when the SEC fined Trendon Shavers and the BTC Savings Trust $ 40 million. The SEC stated that the Ponzi program promised huge returns to investors but raked in 700,000 BTC itself:
“Whether it’s US dollars, Bitcoin or Magic Beans, the SEC has proven that regardless of the assets or technology used, Ponzi programs are a form of fraud that can be prosecuted using the old laws.”
While it’s true that US authorities are pursuing some major projects under the current regulatory framework, half of the $ 2.5 billion generated by enforcement came from a failed project: Telegram’s TON blockchain. Consulting firm Cornerstone Research released a report documenting the SEC’s $ 1.7 billion in crypto enforcement efforts, but Ellitpic’s $ 2.5 billion also took into account penalties from other regulators. The Commodity Futures Trading Commission has also fined companies heavily and confiscated $ 624 million from crypto projects in enforcement efforts such as the United States’ Financial Crimes Enforcement Network. Most of the penalties relate to unregistered securities offerings and AML violations by Elliptic and emerging investors and companies, which requires greater regulatory clarity in the industry.
DC Forecasts is a leader in many crypto news categories, always striving for the highest journalistic standards and adhering to strict editorial guidelines. If you would like to share your expertise or contribute to our news page, please contact us at [email protected]