The United States Securities and Exchange Commission (SEC) charged John Wise and his company Loci Inc. with allegedly selling an unregistered digital asset and misrepresenting the sale, the commission said on Tuesday.
The SEC claims that Loci and Wise raised $ 7.6 million from sales of unregistered “LOCIcoin” tokens between August 2017 and January 2018 and that Wise used more than $ 38,000 of the fund risk for personal gain. In making these alleged acts, Wise and Loci Inc violated sections of the Securities Exchange Act of 1934 and the Securities Act of 1933. Kristina Littman, director of the network unit of the SEC Enforcement Division, said in the statement
“Loci and its CEO have misled investors about important aspects of Loci’s business. Digital securities investors enjoy truthful information and full disclosure so they can make informed investment decisions. “
Loci and Wise have destroyed all outstanding LOCIcoins and agreed not to participate in future digital asset offerings. Neither party has confirmed or denied the SEC’s allegations, according to the press release, despite Loci and its management paying $ 7.6 million in civil fines.
According to a recent report by blockchain analytics firm Elliptic, the SEC is leading other U.S. regulators in preventing crypto misconduct – mostly in the form of unregistered securities.
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Source: Coin 68
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