Two ICO Issuers Settle SEC Charges for Failing to Register Tokens

Two initial coin offering ("ICO") issuers each agreed to pay $250,000 to settle SEC charges of offering and selling ICO tokens without (i) registering them pursuant to securities laws or (ii) qualifying for an exemption to registration requirements under the Securities and Exchange Act of 1934. The two settlement agreements (see here and here) are the SEC Cyber Unit's first cryptocurrency-related cases imposing civil money penalties exclusively for selling ICO securities in violation of offering registration requirements and without allegations involving fraud. In addition to paying the civil monetary penalty amounts, the Respondents agreed to (i) return funds to impacted investors, (ii) register the tokens as securities, and (iii) file reports with the SEC.