SEC shut down more than a dozen illegal ICOs

Monday 5 November 2018 13:22 CET | News

The US Securities and Exchange Commission (SEC) brought more than a dozen successful enforcement actions specifically related to token sales in the fiscal year that ended 30 September.

At least three of these sales reportedly raised more than a combined USD 68 million from investors before being shut down. Nevertheless, the increase in enforcement actions surrounding initial coin offerings (ICOs) and other crypto-related startups was significant.

In the report, the SEC Division of Enforcement noted that its new Cyber Unit, formed at the end of the 2017 fiscal year, has helped it expand its focus on cyber-related misconduct. By the end of the fiscal year, the Division had more than 225 cyber-related investigations ongoing.

Beyond startups offering ICOs, the SEC Enforcement Division has gone after startups and other entities acting as unregistered broker-dealers facilitating token sales, according to CoinDesk.

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Keywords: SEC, ICOs, tokens, cryptocurrency, illegal, fraud prevention, blockchain
Countries: World

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