EOS Blockchain giant Block.one paid a hefty charge of $24 Million to The Securities and Exchange Commission (SEC) for performing an ICO (Initial coin offering) without any registration with SEC. Block.one is the developer of EOS Blockchain, the initial coin offering was conducted from 2017 to 2018 in which Block.one gained $4.1 Million.
Stephanie Avakian from SEC’s Division of Enforcement stated in a report that Block.one performed an unregistered ICO for the purpose of the Security offering, this move from Block.one was unregulated and against the laws of Security and Exchange Commission, because of which Block.one welcomed a huge Penalty
Also, Steven Peiken, co-director of the Division of Enforcement also reported the ICO Investors were not Entitled with the information in a securities offering conducted by the Block.one.
He also stated that
“The SEC remains committed to bringing enforcement cases when investors are deprived of material information they need to make informed investment decisions.”
After this exercise, block.one published on their website stating
“We are excited to resolve these discussions with the SEC and are committed to ongoing collaboration with regulators and policymakers as the world continues to develop more clarity around compliance frameworks for digital assets.”