More Than a Dozen Illegal ICOs Seized In The Past Year: SEC

Nov 2, 2018 at 18:30 Update Date :Nov 15, 2018 at 13:08 UTC

The United States Securities and Exchange Commission (SEC) has shut down more than a dozen illegal ICOs by enforcing actions focused more on the token sales in the fiscal year that summed up on September 30.

As per the reports of the agency that came on Friday, before shutting down, the three of these token sales involving illegal ICOs generated collectively over $68 million from the investors.

To be specific, it is just a small portion of more than $3.945 billion (which was generated from the illegal ICOs) that the SEC collected during the fiscal period. However, there was a significant rise in enforcement actions regarding illegal initial coin offerings (ICOs) and other cryptocurrency related startups.

SEC Reports on Illegal ICOs

According to the reports, considering the rise of the ICOs over the year, the agency has figured out cases that deliver the broad messages and had an impact on the market beyond their corners. The SEC Division of Enforcement stated that the new Cyber Unit which was established at the end of the fiscal year 2017 has helped it to expand the focus on the incidents regarding cybersecurity. Thus, the efforts of SEC’s enforcement have an impact on the number of areas where the federal securities laws meet with cyber problems.

It reported “the Commission brought 20 standalone cases, including those cases involving ICOs and digital assets,” As per the facts of the reports, by the end of fiscal year, division noted more than 225 cyber-related ongoing investigations.

The reports further stated that as the cases involved are more of allegations of fraud, meanwhile, the division has pursued enforcement actions in order to ensure compliance with the federal securities law registration requirements. Over the year, the division has done more than dozens of investigations against cases involving illegal ICOs and other digital assets, many of those investigations were going till the close of the fiscal year 2018.

Apart from startups offering ICOs, the SEC Enforcement Division has investigated startups and other things behaving as unregistered broker-dealer facilitating token sales.

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