American CryptoFed DAO LLC, which says its mission is to create a blockchain-based monetary system “with zero inflation, zero deflation and zero transaction costs,” is a rarity among crypto collectives: It actually sought out regulation, not only registering as a decentralized autonomous organization, or DAO, under Wyoming law but also seeking approval from the U.S. Securities and Exchange Commission for the tokens it planned to offer to prospective members.
The DAO’s reward? On Friday, the SEC announced its second administrative proceeding against American CryptoFed, accusing the DAO of filing a misleading registration form for a proposed public offering of its tokens under the Securities Act and of refusing to cooperate with the SEC’s investigation of the offering materials.
‘Enforcement 40’ for 2020
Join Us On LinkedIn
Join the Securities Litigation and Enforcement Group on LinkedIn