Nebulous, the builder of the SIA network, settled with the US Securities and Exchange Commission over an unregistered sale of Siacoin in 2014. The settlement totaled $225,000, over the value of the sale in 2014 at $120,000.
Siacoin by rule produces the SC asset as a utility coin, based on sharing distributed computational resources. But the project adopted a double-token model, issuing Sianotes that were convertible to Siafunds. The new type of asset was seen as an unregistered security by the SEC.
The SEC noted that Nebulous proposed assets that fit the definition of securities. The company proposed an asset named Siastock, which promised future returns.
“Nebulous offered 1,...