The US Securities and Exchange Commission (SEC) has penalized TokenLot, a company that had offered sales platform for tokens issued in the execution of an Initial Coin Offering (ICO) crowdfunding model, for working without securities registration, an SEC statement from Tuesday revealed. TokenLot, which had described itself as an ‘ICO Superstore’, cooperated with the Commission and refunded investor money.
“This is the SEC’s first case charging unregistered broker-dealers for selling digital tokens after the SEC issued The DAO Report in 2017 cautioning that those who offer and sell digital securities must comply with the federal securities laws,” the Commission explained.
TokenLot received more than 6,100 applications from retail investors who wanted to list their tokens on the company’s sales platform. The Michigan-based firm a...
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