Three ICOs Missed US SEC Repayment Deadline, Broke the Deal

Several firms that collectively raised about $40 million through unregulated initial coin offerings (ICOs) in 2017 missed their deadlines to repay investors following charges by the United States Securities and Exchange Commission (SEC). The Wall Street Journal reported on Nov. 14 that the firms agreed to repay investors or provide more transparency in exchange for lower fines, but did not follow through. The tardy firms Airfox and Paragon Coin missed the original deadline to repay investors who bought their tokens, which was set for Oct. 16. A third startup is…

Kik “Void for Vagueness” Plea Against SEC Dismissed by Judge

Kik, the former messaging app now shifting its focus to cryptocurrency, has been involved in a court case with the SEC, which alleges that a 2017 ICO breached the commission’s regulations due to the fact that its coin, Kin, is actually a security. Kik Legal Team Struggle for Plausible Explanation The legal team for Kik has argued in the court of the Southern District of New York that the case against it is null and void based on the premise that the legal definition of an “investment contract” is unclear. However, the…

Kik “Void for Vagueness” Plea Against SEC Dismissed by Judge

Kik, the former messaging app now shifting its focus to cryptocurrency, has been involved in a court case with the SEC, which alleges that a 2017 ICO breached the commission’s regulations due to the fact that its coin, Kin, is actually a security. Kik Legal Team Struggle for Plausible Explanation The legal team for Kik has argued in the court of the Southern District of New York that the case against it is null and void based on the premise that the legal definition of an “investment contract” is unclear. However, the…

Telegram Denies All SEC Allegations and Requests Dismissal of Trial

Telegram has refuted allegations by the US Securities and Exchanges Commission in court, which claim that the planned Gram token from the messaging app is a security and, therefore, subject to regulations from the commission and has requested that the trial be dismissed because of this. Last month, the SEC successfully sought an injunction preventing Telegram from launching TON due to the fact that the ICO used to raise funds to develop the network was illegal. As a result of the injunction, investors in two separate ICOs were offered the chance to…

Preview of Today’s SEC Meeting on Harmonizing Securities Exemptions

Today, the United States Securities and Exchange Commission (SEC) is hosting two meetings of the investor advisory committee. The second of these is scheduled to start at 1:00 PM EST and will deal with the SEC’s earlier request for comment on harmonization of securities exemptions. The trouble with exemptions The current schema of exemptions is overgrown, with the adoption of the Jumpstart Our Business Startups (JOBS) Act of 2012 adding complications that are still being threshed out. The act legalized crowdfunding from non-accredited investors and expanded the exemptions listed under…

US SEC Report Notes Trading Suspensions, Actions Against Crypto Firms in 2019

The United States Securities and Exchange Commission (SEC) suspended securities trading of 271 issuers this year, including some digital assets. The SEC released its annual report for the fiscal year of 2019 on Nov. 6, in which the regulator also noted that the number of suspensions is only slightly lower than last year’s 280. 31 court-ordered asset freezes in 2019 The report notes a Nevada company that falsely claimed to have partnered with an SEC-qualified custodian for its crypto transactions and to offer an SEC-regulated token offering as an example.…

The SEC Does Not Want Crypto ETFs — What Will It Take to Get Approval?

October has been a busy month in the race to register the first crypto exchange-traded fund compliant with the requirements of United States regulators. Following the Chicago Board Options Exchange withdrawing its proposal for VanEck/SolidX Bitcoin ETF earlier in September, the ETF filing from Bitwise Asset Management and NYSE Arca was turned down by the Securities and Exchange Commission on Oct. 9. The regulatory authority remained unconvinced of the applicants’ ability to prevent manipulative practices to the extent required by a national securities exchange. For a brief moment, the only standing Bitcoin…

Telegram Releases Test Gram Wallet Despite Pending SEC Suit

Telegram has released a test version of its desktop wallet for its own digital coin, known as Grams, despite an injunction from the SEC preventing the launch of its planned blockchain, Telegram Open Network (TON). Users can download the desktop app on Windows, macOS, and Linux 64 bit from Telegram’s official website. The app greets users with the message, “Now you have a wallet only you control – directly, without middlemen or bankers.” Users can also engage in test transactions with Grams distributed by a special Telegram bot; however, it warns that these…

CFTC and SEC Hammer Down Bitcoin-Linked Investment Platform 

Two top U.S. financial watchdogs, the United States Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC) have filed a cease-and-desist order against XBT Corp. SARL, a.k.a First Global Credit, a Swiss Bitcoin-based securities dealer that allegedly solicited investments from  U.S. investors without registering with the agencies. The firm has also been ordered to pay over $200k as fine, according to an October 31, 2019 press release. End of the Road  As part of its ongoing efforts to sanitize the U.S financial ecosystem, the Securities and Exchange…

Security Token Platform Receives Transfer Agent License From SEC

Harbor, the digital platform for alternative assets, has received a transfer agent license from the United States Securities and Exchange Commission (SEC). On Oct. 31, Harbor CEO Joshua Stein told the Block that his blockchain-enabled platform is “now the first blockchain company to receive both a transfer agent license and a broker-dealer license.” Transfer agent license will compliment broker-deal license The transfer agent license will enable Harbor to maintain financial records of security token ownership, track account balances and pay out dividends while attracting blockchain companies that are looking to…