© Reuters. The U.S. Securities and Exchange Commission (SEC) has compelled two crypto startups to register their token sales as securities offerings. It’s the first time the SEC has pursued such an action without additional charges of fraud.
In a pair of orders published Friday morning, the SEC announced it had settled charges with CarrierEQ Inc., otherwise known as Airfox, and Paragon Coin Inc., wherein both startups would register their tokens as securities, refund investors, pay penalties of $250,000 and file periodic statements with the regulator for at least the next year.
And like last week’s settlement with Zachary Coburn, founder of the decentralized exchange EtherDelta, this seems to be a harbinger of things to come.
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