The U.S. Securities and Exchange Commission’s ‘SEC’EnforcementDivision hasrevealedits annualenforcement report for the 2018 [Fiscal year] recently 2nd November. The report notes actions by the Division againstfallaciousInitial Coin Offerings (ICOs).
As per the report, since the formation of the Division’s Cyber Unit atthe end of the Fiscal year 2017, the commission’sspecialise incyber-related misconduct,as well asICOs, has been growingsteadily. The SEC attributes this to an associated“explosion” in crypto-asset offerings,thatit saysareusuallythought ofinsecureinvestments.
In line with the the report published:
“Within the past year, the Division has opened several investigations involving ICOs and digital assets,severalofthatwerein progressat thecloseof FY 2018.”
The report notesmanyillicit ICOs,3ofthatdefrauded investors of over $68 Mln: the co-founders of areputedfinancialservices startup raised $32 Mln from several of investors, the “blockchain evangelist” president ofTitaniumBlockchain Infrastructure ServicesInc. that raised $21 Mln, along with a “recidivist law violator” that raised $15 Mln by promising a 13-fold monthlyreturnon investments.
TheEnforcementDivisionconjointlynoted new key formationswithin theagencyto deal withcapitalist protection,likethe Division’s Retail Strategy Task Force [RSTF]. In turn, the RSTF has launched a lead-generation and referral initiative involving trade suspensionsrelated tothe crypto and blockchain industries.
The report further added, the SEC ordered $3.94 Bln in total penalties andpukingover FY 2018, $3.04 Bln ofthatwas ordered fromthe top5% largest cases.
Earlier in October, Yahoo Finance andDecryptMediarevealeda joint report, claiming that the SEC hasexpandeditsholdingon ICOs,outlining“hundreds” ofprojects in danger. Yahoo and Decrypt noted thatthere’sstillan absenceofregulativecertaintywithin thearea,and theagency “is notaiming togivethem.”
The reportexplaining furtherstates that, in response to SEC pressure, dozens ofcorporations“quietly agreed” to refund investors’investmentsand even paid fines,instead trying an attempt toreach any legal compliance.