The United States Securities Exchange Commission (SEC) has levied a fine of $250,000 on the Blockchain of Things Inc (BCOT).
The regulatory commission fined Blockchain of Things Inc (BCOT) for conducting the sale of unregistered tokens (ICO). Besides, the startup agreed to refund investors who notify the firm they want their money back.
The official statement from the SEC reads: “Pursuant to the order, BCOT undertakes to return funds to those investors who purchased tokens in the ICO and request a return of the funds.”
According to BCOT, its main objective is to ensure that developers get the option to create their cryptocurrencies. Also, to transfer and use them. However, the SEC sanctioned the platforms for not registering the ICO properly.
It’s a security, says SEC
The SEC deems ICOs a form of security and must be registered. Accordingly, the regulatory agency had warned BCOR about this. It had even cited the investigation on DAO carried out in 2017.
However, BCOT went ahead regardless and raised about $13 million in December 2017. Particularly, the startup permitted four resellers to offer tokens in foreign countries, which in turn resold the tokens to U.S. investors. This factor played a major role in the SEC’s final decision.
BCOT to follow proper procedure
The SEC also mandated BCOT to register its tokens as securities “pursuant to the Securities Exchange Act of 1934.” Also, the company will have to file required periodic reports with the Commission.
BCOT already accepted the order without admitting or denying the findings.
In case you missed out on earlier news, the United States Securities and Exchange Commission (SEC) granted the New York Digital Investment Group (NYDIG) permission to offer shares to institutional investors.
Besides, the SEC has recently changed its Head of Cyber Security.