SEC: PARAGON AND AIRBOX MUST RETURN THE MONEY TO INVESTORS AND PAY $ 250,000 EACH
The US Securities and Stock Market Commission repeated its warning to ICO projects and reported on measures against Paragon and AirFox companies.
In an official statement, the SEC expressed its intention to maintain a balance between tolerance and enforcement of “generally accepted ” rules, confirming legal steps against the two ICO operators, which together raised $ 27 million in 2017.
“We would like to emphasize… that market participants should continue to adhere to our generally accepted and deferred Federal system of securities laws when developing technological innovations, regardless of whether securities are issued in the form of certificates or using new technologies like blockchain.”
In February, a lawsuit was filed in the US against the startup Paragon. The company AirFox also came under regulation.
According to the decision of the SEC, both companies will have to return millions of dollars collected during the ICO to investors, as well as pay a fine of 250,000 dollars.
Also in the official statement of the regulator, the EtherDelta project is mentioned, and earlier this month the Coburn project also agreed to pay a fine of 388,000 dollars, despite not recognizing its responsibility for the creation of an “unregistered securities exchange”. The Commission on securities of the USA strongly recommends that the ICO projects to seek advice before starting projects.