As regulatory authorities continue to clamp down on erring projects, the United States Securities and Exchange Commission (SEC) has announced a settlement with Blockchain of Things Inc. (BCOT). According to the publication, BCOT has agreed to return funds gotten from an unregistered initial coin offering (ICO) and will also register the tokens.
Back in December 2017, New York-based BCOT conducted an ICO and pulled in almost $13 million, funds that were earmarked for expanding its business, as well as building a blockchain technology platform. The release further states that BCOT intended for its platform to assist developers in creating blockchain applications that will allow message transmission, digital asset generation, and digital asset transfer. However, the ICO was not properly done as BCOT did not register the offering and also did not qualify for a registration exemption.
Speaking on the startup, SEC Division of Enforcement Associate Director Carolyn M. Welshans said:
“BCOT did not provide ICO investors with the information they were entitled to receive in connection with a securities offering. We will continue to consider appropriate remedies, such as those in today’s order, to provide investors with compensation and required information and to provide companies who conducted unregistered offerings with an opportunity to move forward in compliance with the federal securities laws.”
The SEC’s order requires BCOT to “cease and desist” from any further violations, and pay a fine of $250,000. Then BCOT must return all funds to the ICO participants and then register the tokens properly.
Back in October, the SEC reached a $24 million settlement with blockchain company Block.one, for the same offense.
Image Credits: Pixabay
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