The firms collectively raised about $40 million through illegal sales of digital tokens during the height of the cryptocurrency boom in 2017, when over $5.4 billion was raised. In exchange for paying lower fines, the companies were supposed to meet the Securities and Exchange Commission’s fundraising rules. The agency touted the pacts as a template for resolving similar cases.
But two of the companies missed their original deadline last month to repay people who bought their tokens. A third startup is more than five months behind its target date for giving investors information needed to judge whether to seek a refund. All three say on their websites the SEC has given them more time to do the work, although the regulator doesn’t itself disclose that.
‘Enforcement 40’ for 2020
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