Quantstamp to Return $28 Million Following Charges by the SEC
Quantstamp, a blockchain security firm, has agreed to return $28 million raised in a 2017 initial coin offering (ICO) after being charged by the United States Securities and Exchange Commission (SEC). The SEC accused Quantstamp of conducting an unregistered ICO of “crypto asset securities”. The ICO raised over $28 million by selling its QSP tokens to 5,000 investors. The SEC found that Quantstamp failed to register its offering and sale of tokens as securities. As part of the settlement, Quantstamp agreed to a cease-and-desist order and will pay disgorgement, prejudgment interest, and a civil penalty. The firm will also establish a Fair Fund to return funds to affected investors.
Key Points:
- Quantstamp to return $28 million raised in 2017 ICO.
- SEC charges Quantstamp with conducting an unregistered ICO of “crypto asset securities”.
- Quantstamp failed to register its offering and sale of QSP tokens.
- Settlement includes disgorgement, prejudgment interest, and a civil penalty.
- Fair Fund to be established to return funds to affected investors.
Hot Take:
This case highlights the importance of compliance with securities laws in the cryptocurrency industry. The SEC is cracking down on unregistered ICOs and holding companies accountable for their actions. In this instance, Quantstamp has agreed to return the funds raised and pay penalties. It serves as a reminder to other companies in the crypto space to ensure they are following regulations to protect investors and maintain the integrity of the industry.
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