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.
via SEC’s Settlements With Some Cryptocurrency Firms Showing Cracks – WSJ.
