SEC: Block.one and the $24 million fine for the EOS ICO
Crypto

SEC: Block.one and the $24 million fine for the EOS ICO

By Stefano Cavalli - 1 Oct 2019

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Yesterday, Monday 30th September, the Security and Exchange Commission (SEC) issued a document ordering Block.one to pay a $24 million fine for carrying out the EOS ICO.

“The Securities and Exchange Commission today announced settled charges against blockchain technology company Block.one for conducting an unregistered initial coin offering of digital tokens (ICO) that raised the equivalent of several billion dollars over approximately one year. The company agreed to settle the charges by paying a $24 million civil penalty.”

Following the SEC’s move, Block.one also issued a statement explaining that the sanction will apply to the initially sold ERC-20 tokens, while once the network was put online, no irregularities were committed.

“We are excited to resolve these discussions with the SEC and are committed to ongoing collaboration with regulators and policy makers as the world continues to develop more clarity around compliance frameworks for digital assets.”

Although a $24 million fine may seem exaggerated, it is less than 1% of the $4 billion collected by Block.one during the EOS ICO.

While most may think it’s bad news, it’s actually extremely positive: Block.one also said that EOS will never be a security token and the market is reacting very well with a 9.7% increase for the token, partly due to the recovery of bitcoin (BTC).

The development of Block.one can continue unchallenged and, just a few weeks ago, the company opened a new headquarters in Washington promising the creation of more than 170 jobs in the next three years.

After the presentation of Voice, the EOS social network previewed in June 2019, the token has suffered a significant drop from $8.46 to $6.15 in a few hours, a sign showing that investors have not reacted as most of the crypto community expected.

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