The U.S. Securities and Exchange Commission’s ‘SEC’ Enforcement Division has revealed its annual enforcement report for the 2018 [Fiscal year] recently 2nd November. The report notes actions by the Division against fallacious Initial Coin Offerings (ICOs).
As per the report, since the formation of the Division’s Cyber Unit at the end of the Fiscal year 2017, the commission’s specialise in cyber-related misconduct, as well as ICOs, has been growing steadily. The SEC attributes this to an associated “explosion” in crypto-asset offerings, that it says are usually thought of insecure investments.
In line with the the report published:
“Within the past year, the Division has opened several investigations involving ICOs and digital assets, several of that were in progress at the close of FY 2018.”
The report notes many illicit ICOs, 3 of that defrauded investors of over $68 Mln: the co-founders of a reputed financial services startup raised $32 Mln from several of investors, the “blockchain evangelist” president of Titanium Blockchain Infrastructure Services Inc. that raised $21 Mln, along with a “recidivist law violator” that raised $15 Mln by promising a 13-fold monthly return on investments.
The Enforcement Division conjointly noted new key formations within the agency to deal with capitalist protection, like the Division’s Retail Strategy Task Force [RSTF]. In turn, the RSTF has launched a lead-generation and referral initiative involving trade suspensions related to the crypto and blockchain industries.
The report further added, the SEC ordered $3.94 Bln in total penalties and puking over FY 2018, $3.04 Bln of that was ordered from the top 5% largest cases.
Earlier in October, Yahoo Finance and Decrypt Media revealed a joint report, claiming that the SEC has expanded its holding on ICOs, outlining “hundreds” of projects in danger. Yahoo and Decrypt noted that there’s still an absence of regulative certainty within the area, and the agency “is not aiming to give them.”
The report explaining further states that, in response to SEC pressure, dozens of corporations “quietly agreed” to refund investors’ investments and even paid fines, instead trying an attempt to reach any legal compliance.