Bloomberg Law
Nov. 16, 2018, 4:44 PMUpdated: Nov. 16, 2018, 8:07 PM

Crypto Firms Fined for Not Registering ICOs as SEC Warns Peers (1)

Lydia Beyoud
Lydia Beyoud
Fintech & Regtech Reporter

The SEC announced its first civil penalties against two cryptocurrency companies that didn’t register their initial coin offerings as securities.

Crypto companies Airfox and Paragon Coin Inc. will each have to pay $250,000 in penalties to compensate investors, and will also have to register their digital tokens as securities, the agency said in a Nov. 16 news release.

The Securities and Exchange Commission pointed to the consent decrees and investor reimbursement as a roadmap for other crypto firms to follow. The consent orders “provide a model for companies that have issued tokens in ICOs and seek to comply with the ...

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