As night fell on Monday, the SEC dropped a bombshell for U.S. crypto enthusiasts.
Revealed in a press release At around 7:00 pm EST, the SEC divulged that they had reached a settlement with the blockchain developer Block.one. EOS Block.one was fined for running an ICO without proper registration.
This is arguably one of the most significant crypto crackdowns by the SEC to date.
SEC Issues $24 Million Over EOS ICO
In the announcement, it was mentioned that Block.one agreed to a $24 million civil penalty without admitting guilt.
Block.one, located in both Virginia and Hong Kong, agreed to the terms while neither confirming nor denying the accusations laid by the SEC.
The friction started from Block.one's sale of EOS tokens which netted $4.1 billion, a landmark ICO haul.
The SEC's stance was that Block.one's ICO didn't comply with the necessary securities registration or exemptions.
Steven Peikin from the SEC Enforcement Division said investors weren't given the full information they deserved.
He emphasized the need for transparency to ensure investors make informed decisions.
Despite $24 million being a hefty amount, many were surprised it was just a fraction (0.6%) of the funds raised.
Crypto critics felt the fine was merely a token slap rather than a severe penalty. After all, Block.one had previously spent even more on a web domain.
Regardless of what's been said about the deal's leniency, the $24 million signifies closure for both parties.
Can't believe Block.one's situation actually unfolded like this.
The SEC dove deep into the details and settled for a tiny percentage of Block.one's raised capital.
— nic ???? carter (@nic__carter) September 30, 2019
Block.one looks forward to getting past these issues
The SEC's announcement lacked in addressing how Block.one would respond or in providing settlement specifics.
In response, Block.one released a statement on October 1, 2019. revealed They clarified the settlement mostly involved its former Ethereum-based ERC-20 token and not the newer tokens for EOS.
The settlement also granted Block.one a crucial waiver ensuring they avoided future limitations standard with such resolutions.
Block.one stated they're eager to finalize discussions, pledging collaboration for clearer digital asset regulatory frameworks.
This case might be closed, but the SEC's appetite for crypto regulation isn't waning.
More to Come…
Lately, the SEC has aggressively tackled alleged crypto misconduct left and right.
Earlier, the SEC targeted the social media platform Kik over its sizable $100 million ICO. They've also tried to control Veritaseum's proceedings.
Block.one's case as one of the largest ICOs has magnified the SEC's vigilance over leading crypto firms.
