Munchee, a California-based restaurant review app company, had been seeking to raise USD 15 million to create an “ecosystem” where Munchee and others could buy and sell goods and services using the tokens.
The SEC halted the sale of the tokens on November, 1, 2017 the day after they went live as Munchee had been offering an unregistered security for sale. Furthermore, the US regulator also warned consumers of the dangers of investing in crypto-currencies issued by companies in general.
In the UK, the Financial Conduct Authority said in September 2017 that investors could lose their entire stake in high-risk digital token investments. Earlier in 2017 China banned initial coin offerings, calling them “illegal fundraising”. Regulators in Singapore, Hong Kong and Canada have also pointed out some of the dangers, BBC continued.
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