The SEC (U.S. Securities and Exchange Commission) has issued a 24 million dollar settlement to Block.one to pay for penalties that resulted in the conduction of an unregistered ICO (initial coin offering).
In a press release issued on September 30th, the SEC announced the settlement against the firm that was behind the EOS network’s token with a civil monetary penalty. Block.one decided to settle these charges without denying or admitting the findings that were brought forth against the company.
It was also mentioned in the press release that 900 million of Block.one’s tokens started prior to the SEC releasing a DAO Report of Investigation, and continued for almost a year after the report was published.
According to the SEC, billions of dollars were raised by Block.one but its ICO, a securities offering, was never registered in accordance with United States federal securities laws. The company didn’t request an exemption or qualify for registration requirements.
Stephanie Avakian, the co-director of the Division of Enforcement at the SEC remarks that numerous U.S. investors had partaken in Block.one’s ICO and any companies that sell or offer securities to United States investors must meet the terms of the securities laws, regardless of which industry they operate out of or the labels placed on the types of investment products being offered.
Additionally, Steven Peiken, the co-director of the Division of Enforcement at the SEC says that Block.one didn’t give ICO investors the information. He goes on to say that the SEC is dedicated to bringing forth enforcement cases whenever investors have not received the important information needed to make a more informed decision about their investments.
The fine isn’t going to make a substantial dent in the company’s overall profits, as it’s only a small percentage of the 4 billion they made in earnings.
Block.one to Open Washington D.C. Headquarters
It was recently reported that Block.one was planning to open their fourth global site in the metropolitan Washington, D.C area. Over the next three years, the new building is expected to create 170 highly-skilled positions.
Brendan Blumer, Block.one’s CEO, believes that the new site’s closeness to the nation’s capital puts them in close proximity to policy innovations surrounded by distributed ledger technology and digital assets in the United States. The expansion will also serve as a mecca for new and upcoming talent during a time when blockchain-based technologies are in great demand.