The Securities and Exchange Commission of the United States has urged the two start-ups of the crypto-currency to get sales of their tokens registered in the form of offerings of the securities.
The Securities and Exchange Commission has pursued such an action for the first time ever without any additional charges of fraud in order to charge a handsome amount.
On Friday morning, the Commission published a pair of orders announcing that it has now settled its charges with the CarrierEQ Inc which is also known as the Airfox as well as Paragon Coin Inc. in the settlement, the two start-ups would be registering their tokens in the form of securities and that they would be refunding their investors.
In additional to this, they would also be paying penalties worth $2,50,000 as well as filling periodic statements for at least the next year with the concerned regulator.
The settlement with the founder of the EtherDelta which is a decentralized exchange, Zachaary Coburn, seemed to be a harbinger of settlements for the things to come in the world of crypto-currency.
Nic Carter is the partner of the Castle Island Ventures which is venture capital focusing on the funds for the block-chain start-ups for the public stated that it believes that the regulator, Securities and Exchange Commission is now building up a new body of the case law.
The case law according to the Nic Carter would be against all the unregistered offerings of the securities along with the bad actors.
Carter stated to the CoinDesk that to say or predict anything regarding the up-coming actions of the Securities and Exchange Commission is very tough.
He further added that though he cannot make predictions but from what he has comprehended from the strategies of SEC, the Commission is now chasing the “slam dunks” along with the low hanging fruits.
According to him, these are cases where it is obvious that a profit will be made by the start-ups or bad actors.
Source: CoinDesk, TokenDaily
