Riot Blockchain Cites COVID-19 Disruption Risks on SEC Form 10-K

Nasdaq-listed cryptocurrency mining firm, Riot Blockchain, filed its Form 10-K annual report to the United States Securities and Exchange Commission (SEC), March 25. Among a long list of other potential risk factors to the business, the report assesses the potential disruptions due to the COVID-19 pandemic. COVID-19 will affect cryptocurrency mining business As part of the Form 10-K a company must include information about any significant risks to its business. Riot further subdivides these risks into several sections, although interestingly lists the risks from COVID-19 as a cryptocurrency-related risk, rather…

Telegram Is Losing to the US SEC, TON Community Can Launch Network Regardless

As Telegram’s legal battle with the United States Securities and Exchange Commission continues to unfold, the U.S. authorities have convinced the judge to bar the company from issuing Gram tokens — at least in the near future. On March 24, the U.S. District Court for the Southern District of New York judge said that the SEC “has shown a substantial likelihood of success” in proving that Telegram, the firm behind the eponymous open-source encrypted messenger, distributed unregistered securities.” As a result, the federal judge granted a preliminary injunction against the…

Court Sides With SEC, Grants Injunction Against Issuing GRAMs

A United States District Court has granted an injunction against Telegram, preventing the company from issuing its GRAM tokens at the present time. Court says that GRAMS are securities under Howey test Per a March 24 filing granting the Securities and Exchange Commission’s request for a preliminary injunction, the Court wrote that: “The Court finds that the SEC has shown a substantial likelihood of success in proving that  the contracts and understandings at issue, including the sale of 2.9 billion Grams to 175 purchasers in exchange for $1.7 billion, are…

Both Kik and SEC Seek Summary Judgement in $100 Mln ICO Case

Canadian messenger firm Kik is seeking pre-trial summary judgment in its legal dispute with the United States Securities and Exchange Commission (SEC) over the company’s $100 million initial coin offering (ICO) in 2017. On March 20, Kik submitted a memorandum of law requesting the summary judgment from the court, asserting that the SEC had failed to demonstrate that its KIN tokens comprised unlicensed securities. Kik expects legal victory with summary judgment Referring to its public sale as a token distribution event (TDE) rather than an ICO, Kik argues that its…

US Court Fines ICOBox $16M for Securities Violation in SEC Case

A federal court has ordered ICOBox to pay a $16 million penalty to the Securities and Exchange Commission’s (SEC) for violating U.S. securities law. On March 5, Judge Dale S. Fischer of the District Court for the Central District of California granted the SEC’s motion for default judgment against the ICO-as-a-service platform and founder and CEO Nikolay Evdokimov. The SEC first brought charges against ICOBox in September 2019, accusing the company of hosting an unregistered securities sale. The regulator also accused the company of acting as an unlicensed securities broker…

Retail Demand May Force the SEC to Approve a Bitcoin ETF

Several investment firm executives have debated the likelihood of the U.S. Securities and Exchange Commission (SEC) licensing a U.S.-based Bitcoin (BTC) exchange-traded fund (ETF) during a CNBC broadcast on March 7. The discussion follows the SEC’s recent rejection of its last pending Bitcoin ETF application.  Wilshire Phoenix had first filed the application for its proposed ‘United States Bitcoin and Treasury Investment Trust’ with the SEC during January 2019.  Despite amending their application six times in 13 months, the SEC rejected Wilshire Phoenix’s ETF, citing concerns about manipulation of Bitcoin’s market,…

ICOBox Startup Fails to Acknowledge US SEC Action, Owes $16M

The U.S. Securities and Exchange Commission, or SEC, has ordered that ICO broker ICOBox must pay $16 million after the startup failed to act on previous legal action from the commission. U.S. District Judge Dale Fischer of California sided with the SEC in a default judgement, after the alleged unregistered broker failed to respond to the commission’s lawsuit against the startup from September 2019, according to a March 6, 2020 statement. ICOBox allegedly conducted an unregistered token offering, as well as unregistered broker activities. The SEC filed with California courts…

SEC Proposes to Simplify ‘Complex and Confusing’ Exempt Offering Rules

The US Securities and Exchange Commission (SEC) has voted to propose a set of rule changes to simply and improve the “patchwork” rules for exempt securities offerings. The proposed rule changes aim to improve the existing ‘complex and confusing’ framework to make it easier for companies to conduct offerings that still protect investors. In the US offerings of securities, including Initial Coin Offerings (ICOs), must either be registered with the SEC or qualify for an exemption. The majority of entrepreneurs and emerging businesses — such as Telegram — raise capital…

Many Blast SEC for Denying Bitcoin ETF Proposal: Here’s Why

For years, crypto financial services firms across the U.S. have been trying their hand at launching publicly-traded Bitcoin funds (ETFs). Unfortunately for these hopefuls, the U.S. Securities and Exchange Commission (SEC) has long not agreed with these firms’ assertions that the cryptocurrency market is ready for its own regulated, tradable fund. This was confirmed to be the case yet again when the financial regulator last week denied a proposal for a Bitcoin ETF, angering many in this community and even triggering an SEC commissioner to express her disapproval for this…

Many Blast SEC for Denying Bitcoin ETF Proposal: Here’s Why

For years, crypto financial services firms across the U.S. have been trying their hand at launching publicly-traded Bitcoin funds (ETFs). Unfortunately for these hopefuls, the U.S. Securities and Exchange Commission (SEC) has long not agreed with these firms’ assertions that the cryptocurrency market is ready for its own regulated, tradable fund. This was confirmed to be the case yet again when the financial regulator last week denied a proposal for a Bitcoin ETF, angering many in this community and even triggering an SEC commissioner to express her disapproval for this…