EOS price increases after the Securities and Exchange Commission has made a settlement with the blockchain company Block.one over the yearlong token sale for EOS as we reported earlier in the altcoin news today.
The EOS token sale was the largest one of the year raising over $4 billion by naturally attracting the attention of the regulators. The SEC charged the blockchain company for conducting an unregistered initial coin offering of the tokens between 2017 and 2018 but Block.one neither confirmed nor denied the allegations but has agreed to pay a one-time fine of $24 million. The official statement found that the company used the funds for general expenses such as the promotion of the platform and software development and it stated that the company didn’t register the ICO as a securities offering according to the federal laws nor did it qualify for the registration requirements. The co-director of the SEC Division of Enforcement Stephanie Avakian stated:
“A number of US investors participated in Block.one’s ICO. Companies that offer or sell securities to US investors must comply with the securities laws, irrespective of the industry they operate in or the labels they place on the investment products they offer.”
The company posted a response stating that the ERC-20 tokens were sold but are no longer traded or in circulation. The platform shifted off the Ethereum blockchain last year and on to its own EOSIO mainnet. The company added that the SEC granted an important waiver so that it won’t become subject to restrictions that would apply usually with settlements of this type. It also added that this only shows that the regulator has been satisfied by Block.one’s ongoing compliance:
“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.”
As per the blockchain news today, the settlement news is bullish for the platform and EOS price increases today and the token is one of the top performers at the time of writing with a 10% pump on the day from $2.75 to $3.10. The daily volume surged from the $1 billion to $2 billion as EOS recently hard forked and hit a weekly high.
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