The United States Securities and Exchange Commission (SEC) has done a settlement with the New York-based startup Blockchain of Things Inc. (BCOT) for executing an unregistered ICO.
The SEC noticed that BCOT had neglected to register its ICO as per government federal securities laws and it did not meet all requirements for an exemption from registration prerequisites.
The main objective of BCOT was to make sure the customers, like developers, should have the option to create their cryptocurrencies to transfer and use them. Regardless, the platform’s Initial Coin Offering was not registered as it should have, as per the SEC regulatory rules.
As indicated by the SEC’s order, the startup, BCOT raised about 13 million dollars while executing an unregistered ICO to create and implement a blockchain-based platform that considered third-party developers to develop applications for message transmission, cryptocurrency transfer, and generation.
The press release from US SEC stated,
“The order requires BCOT to cease and desist from committing or causing any violations of the registration provisions of the federal securities laws and imposes a $250,000 penalty. 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. The company also will register its tokens as securities pursuant to the Securities Exchange Act of 1934 and will file required periodic reports with the Commission. BCOT consented to the order without admitting or denying the findings.”