ICO Rating Charged For $268,998 Following Violation Of Anti-Touting Provisions

The United States Securities and Exchange Commission, better known as SEC, has recently charged the Russian analytical agency ICO Rating for $268,998 because of a violation of the anti-touting provisions. According to an official announcement, the agency was charged with these numbers because of multiple violations.

The announcement sees SEC claiming that ICO Rating violated the anti-touting provisions of Section 17(b) of the Securities Act established in 1933 – mostly by failing to disclose payments that it received from the initial coin offering (ICO) issuers that it rated and published on the platform.

According to Melissa Hodgman who is an Associate Director at SEC’s Enforcement Division, ICO Rating violated the rules. In the latest cryptocurrency news and updates, she explained:

“The securities laws require promoters, including both people and entities, to disclose compensation they receive for touting investments so that potential investors are aware they are viewing a paid promotional item. […] This requirement applies regardless of whether the securities being touted are issued using traditional certificates or on the blockchain.”

Without admitting or denying the findings by the SEC, ICO Rating agreed to cease and desist from committing any future violations in the realm of these provisions. The agency also paid disgorgement and prejudgment interest of $106,998 and a civil penalty of $162,000.

In August this year, many best cryptocurrency news sites reported that the SEC reached a $7 million dollar settlement with PlexCorps and its owner Dominique Lacroix, as well as the business partner Sabrina Paradis-Royer and the company itself over an allegedly fraudulent ICO. Unlike the ICO Rating case, this was a more complicated lawsuit.

This month, the New England based firm SimplyVital Health Inc. also settled with SEC over an alleged sum of $6.3 million used for an unregistered ICO. The company did not confirm or deny the allegations that it violated certain aspects of the 1933 Securities Act – but was featured in the altcoin news for agreeing on a cease and desist order that was levied by the SEC.

As it stands, the United States Securities and Exchange Commission (SEC) is getting stricter towards ICO companies and potentially fraudulent initial coin offerings (ICOs). The agency penalized several big projects so far and it seems like it won’t stop doing the same in the future.