{"id":1464,"date":"2018-11-20T08:15:33","date_gmt":"2018-11-20T13:15:33","guid":{"rendered":"https:\/\/www.silvermillerlaw.com\/?p=1464"},"modified":"2023-06-09T12:06:21","modified_gmt":"2023-06-09T12:06:21","slug":"sec-settlements-spur-expectations-wider-ico-crackdown","status":"publish","type":"news_posts","link":"https:\/\/www.silvermillerlaw.com\/press\/in-the-news\/sec-settlements-spur-expectations-wider-ico-crackdown\/","title":{"rendered":"SEC Settlements Spur Expectations of Wider ICO Crackdown"},"content":{"rendered":"<p>The cryptocurrency market is reeling after the SEC fined two companies that didn\u2019t register initial coin offerings as securities and allowed investors to reclaim their money.<\/p>\n<p><strong>\u201cThere\u2019s a global crackdown coming,\u201d said David Silver, a securities fraud and investment loss attorney from Coral Springs, Florida. \u201cGovernment wasn\u2019t going to be intimidated by a bunch of libertarians and anarchists &#8212; in the next year or two, we\u2019ll see more than just enforcement actions.\u201d<\/strong><\/p>\n<p>The U.S. Securities and Exchange Commission\u00a0<a title=\"SEC\" href=\"https:\/\/www.sec.gov\/litigation\/admin\/2018\/33-10574.pdf\" target=\"_blank\" rel=\"nofollow noopener\">pointed\u00a0<\/a>to the consent decrees and investor reimbursement against Airfox and Paragon Friday as a roadmap for other crypto firms to follow, spurring concern that many blockchain projects would declare bankruptcy if forced to comply. Both companies will have to register their tokens as securities.<br \/>\n<br \/>\n<\/p>\n<figure class=\"figure-expandable\" data-type=\"image\" data-id=\"332609796\" data-image-type=\"chart\" data-image-size=\"full\" data-align=\"center\">\n<div class=\"image\">\n<div id=\"lazy-img-332609796\" class=\"lazy-img\"><img decoding=\"async\" class=\"lazy-img__image loaded\" src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ixHPW.wuyLJU\/v2\/620x-1.png\" data-native-src=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/ixHPW.wuyLJU\/v2\/-1x-1.png\" data-img-type=\"chart\" \/><\/div>\n<\/div>\n<\/figure>\n<p>Airfox, an emerging markets financial services company, and Paragon, a blockchain startup in the cannabis industry, conducted token sales last year. Boston-based Airfox raised $15 million in digital assets to finance the development of a mobile app that allows users in emerging markets to monetize clicks on advertisements. Paragon raised $12 million to fund blockchain projects for the cannabis industry.<\/p>\n<p>\u201cThe sell-off is related to enforcement, which is almost certainly underway,&#8221; said Justin Litchfield, chief technology officer at ProChain Capital. &#8220;Projects are being made to return investor money, which, after having spent a ton of money marketing their $100 million ICO on a lavish party-filled road-show that was the norm for this vintage of ICOs, will be tough.\u201d<\/p>\n<p>While the SEC said it encourages technological innovations in capital markets, the agency\u00a0<a title=\"SEC\" href=\"https:\/\/www.sec.gov\/news\/public-statement\/digital-asset-securites-issuuance-and-trading\" target=\"_blank\" rel=\"nofollow noopener\">stressed<\/a>\u00a0that \u201cmarket participants must still adhere to our well-established and well-functioning federal securities law framework when dealing with technological innovations, regardless of whether the securities are issued in certificated form or using new technologies, such as blockchain.\u201d<\/p>\n<p><strong>\u201cWhat we\u2019re looking at is the simple progression of what was always going to happen,\u201d Silver said. \u201cRegulators always step in. This always had to happen.\u201d<\/strong><\/p>\n","protected":false},"featured_media":1777,"template":"","meta":{"_acf_changed":false,"_links_to":"","_links_to_target":""},"news_categories":[10],"class_list":["post-1464","news_posts","type-news_posts","status-publish","has-post-thumbnail","hentry","news_categories-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>SEC Settlements Spur Expectations of Wider ICO Crackdown - SilverMillerLaw.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.silvermillerlaw.com\/press\/in-the-news\/sec-settlements-spur-expectations-wider-ico-crackdown\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"SEC Settlements Spur Expectations of Wider ICO Crackdown - 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