SEC Cryptocurrency Crackdown: Two More ICOs Penalized

In a press release today, the SEC has imposed civil penalties on two more ICOs.

Two ICOs, CarrierEQ and Paragon Coin were punished for conducting illegal securities offerings.

Both ICOs were conducted in 2017 after the SEC warned that ICOs might be securities offerings based on its ruling on the DAO.Background on the ICOs.

According to the Commission, both ICOs had failed to register their tokens as financial securities.

Neither of the ICOs would have qualified for exemptions, either.

"We have made it clear that companies that issue securities through ICOs are required to comply with existing statues and rules governing the registration of securities."

The SEC does appear willing to compromise with ICOs that conducted offerings in 2017 because of the lack of clarity prior to 2018.

"By providing investors who purchased securities in these ICOs with the opportunity to be reimbursed and having the issuers register their tokens with the SEC, these orders provide a model for companies that have issued tokens in ICOs and seek to comply with the federal securities laws."

This action by the SEC is a landmark for its stance on illegal ICOs.

That said, the SEC's stance on ICOs is clear-if an ICO conducts an illegal offering and the SEC has jurisdiction over that company, they will find them, they will charge them, and they will penalize them.