SEC is taking action against crypto-project promoters

Syed AhadWeb Editor

15th Jul, 2021. 12:36 am
SEC

Individuals linked with digital currency ventures from the crypto-mania era are still being prosecuted by the SEC.

The SEC (Securities and Exchange Commission) announced today that they have reached an agreement with Coinschedule.com, a website that provided information and trust scores for initial coin offerings (ICOs), in their case charging Coinschedule’s successor company, United Kingdom-based Blotics Ltd., with violating anti-touting provisions.

Coinschedule was a website that listed information about coins and tokens, provided direct links to the project’s websites and the location where token offerings were held and created credibility and operational risk evaluations for each coin and token they listed.

It was active from 2016 to August 2019. Those measurements, according to Coinschedule, were produced using a proprietary algorithm however, the truth is that digital currency projects paid Coinschedule to cover their coin or token.

Individuals who promote securities must declare the kind, nature, and amount of compensation received in exchange for the promotion, which Coinschedule failed to do, according to the anti-touting provisions of federal securities laws.

“As the SEC’s order finds, Coinschedule presented potential investors with seemingly independent profiles about token offerings when in fact they were bought and paid for by token issuers,” said Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit. “The securities law prohibiting touting securities for compensation without appropriate disclosures to investors is clear and longstanding.”

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