SEC report: Also Paragon and Airfox of penalties against ICOs affected

the on Friday, may 16. November it became known, held two additional ICOs to the requirements of the American stock market regulator Security and Exchange Commission (SEC) and a formal registration failed. The ICOs Paragon and Airfox must therefore compensate their investors and also to pay a fine to the SEC to pay.

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20. November 2018 share Facebook Twitter LinkedIn xing mail

ICOs are in the US a touchy subject. Because even though it was the ICO of Hype in the year 2017, a number of new projects, is the regulation by the securities and exchange Commission.

This fact is clarified in the last time. Because, like BTC-ECHO already reported, the SEC for some time against a whole range of ICOs. The authority of the question of whether or not the Start-ups in an unauthorized manner Securities (securities) issued without registering in advance.

the action of the stock market regulator is now two other ICOs on the feet: Paragon and Airfox. As the SEC reported, you need to compensate for the Start-ups, all investors wish to. Since the two ICOs have taken about 27 million US dollars, is likely to set the compensation of the company's financial problems.

SEC: ICOs are Securities

Specifically, it is again the old story. As the SEC reaffirmed in last time regularly, Token Sales, without a doubt to Securities within the meaning of the Securities Exchange Act of 1934. This arrangement has the result that the Start-ups have to register the Token Sales as such by the authority.

This is a must have overslept Paragon and Airfox. Due to this, the SEC "would not investors will receive the type of information that should've been you with proper handling". This is misleading to justify then the penalty.

Paragon is, however, purified. You to secure the securities and exchange Commission full cooperation for the investigation of the facts. The company is based in Los Angeles even confident that the agreement with the SEC means a kind of new beginning:

"Paragon writes history! We are pleased to give an important comparison to be known, we are working on for over a year – a very positive agreement with the U. S. Securities and Exchange Commission, which will remove the doubts as to the legal status of our PRG-Token“,

VerSteeg so Paragon's CEO. The solution, on the VerSteeg alludes to, involves the compliant registration of the PRG-Token in the sec. Whether this can dispel the doubts of the investors, completely, seems, however, doubtful.

sweeping blow against ICOs and Exchanges

Since the beginning of this year, the SEC has hundreds of ICOs in the visor. It's always a matter of the accusation of failure to register as a Security.

Meanwhile, Exchanges caught in the crosshairs of the authority. The latest case relates to the decentralized Exchange ether Delta. Like BTC-ECHO reported, denounced the SEC is the founder of the stock exchange, Zachary Coburn to pay a fine in the amount of 388.000 US Dollar. The justification for the recent SEC Statement provides:

"The Commission [SEC] noted that the activities of ether Delta clearly fall under the Definition of an Exchange, and that the founder of ether Delta have to answer to, that the platform was not registered as a national securities exchange [ ... ]."

Compliance with the U.S. securities and exchange laws, then, seems the only alternative. Because, more than ever, the SEC this year, proves their determination, against the illegal projects.