SEC settles securities charges against ICO startups

MM

Melisande Mual

19 Nov 2018 / 5 Min Read

CarrierEQ, known as Airfox, and Paragon Coin conducted token sales in 2017, with Airfox raising USD 15 million through its sale, and Paragon raising USD 12 million. However, neither startup registered their ICOs as securities offerings, and neither qualified for registration exemptions. As such, both companies will refund investors, file periodic reports to the SEC and pay USD 250,000 apiece in penalties.

These two cases are the SEC’s first cases imposing civil penalties solely for ICO securities offering registration violations. The release further referenced the Munchee ICO, which the regulator halted in December 2017. Like Airfox and Paragon, Munchee agreed to refund investors in its USD 15 million token sale, though the SEC did not impose additional fines at the time.

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MM

Melisande Mual

19 Nov 2018 / 5 Min Read

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