2 years ago
The Securities and Exchange Commission (SEC) has filed a suit against Chicago Crypto Capital (CCC) for allegedly defrauding investors of $1.5 cardinal by issuing unregistered BXY tokens during the 2018 ICO boom.
The suit filed on Sept. 14 besides named Chicago Crypto Capital (CCC)‘s owner, Brian Amoah, and 2 salesmen — Oliver Young and Elbert Elliot — unregistered broker-dealers.
CCC had offered to merchantability BXY tokens to investors betwixt August 2018 and November 2019. According to the SEC, nary of the defendants was duly registered arsenic a broker.
The defendants allegedly sold BXY tokens to astir 100 individuals, which helped the squad rise implicit $1.5 million. Some investors claimed they ne'er received the tokens and a fewer who received them incurred markup fees.
Young has pleaded blameworthy to the complaint aft paying a colony interest to the SEC.
SEC retired against unregistered securities
The SEC is investigating Coinbase for allegedly issuing unregistered tokens to U.S. investors. Coinbase came nether the SEC’s radar pursuing an insider trading case that identified immoderate of the assets progressive arsenic securities.
Bloom protocol reportedly raised $30.9 cardinal from the merchantability of its BLT token during the ICO roar of 2018. As a result, the protocol has moved to register its BLT token with the SEC to evade a $31 cardinal fine.
Exchanges request to registry to connection securities
According to SEC Chair Gary Gensler, crypto exchanges dealing with securities tokens would person to registry with the SEC.
Gensler added that the issuance and merchantability of astir crypto assets autumn nether securities law. As a result, token issuers indispensable registry with the committee earlier selling their tokens.
The station SEC sues Chicago Crypto Capital for defrauding investors of $1.5M appeared archetypal connected CryptoSlate.
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