The United States Security and Exchange Commission (SEC) has continued its clampdown on erring cryptocurrency projects. In a recently published press release, the SEC has ruled that blockchain technology company Enigma MPC conducted an illegal initial coin offering (ICO).
According to the press release, Enigma conducted an unregistered sale of securities, dubbed ENG Tokens. The SEC says that the sale should have been registered as a security and has ruled that all of the proceeds from the ICO must be returned. Enigma raised nearly $45 million.
Furthermore, Enigma must file regular reports with the Commission and must also pay a fine of $500,000.
According to the Associate Director for Enforcement for the SEC’s Boston Regional Office John T. Dugan operators are expected to furnish participants of a token sale, with all of the required information.
“All investors are entitled to receive certain information from issuers in connection with a securities offering, whether it involves more traditional assets or novel ones. The remedies in today’s order provide ICO investors with an opportunity to obtain compensation and provide investors with the information to which they are entitled as they make investment decisions.”
Enigma has agreed to the judgment without admitting or denying the SEC’s charges.
Last month, the Commission charged another blockchain company for the same offence.
Image Credits: Pixabay
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