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SEC Issues Cease and Desist Order and Further Guidance on ICOs

On December 11, 2017, the U.S. Securities and Exchange Commission (SEC) issued a cease-and-desist order to Munchee Inc. (Munchee), a company that was in the process of a $15 million initial coin offering (ICO), for selling unlicensed securities. The SEC found that the ICO targeted investors, with the expectation of…

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SEC Announces Cyber Enforcement Initiative: Distributed Ledger Technology, Initial Coin Offerings Under the Microscope

On September 25, 2017, the Securities and Exchange Commission (SEC) announced the launch of its new Cyber Unit. Drawing on the existing cyber experience of the SEC’s Enforcement Division, and including personnel from around the country, the Cyber Unit will target cyber-related misconduct in the following areas identified by the…

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China bans and deems illegal the practice of raising funds through launches of token-based digital currencies

Various news sources, including Reuters, are reporting that the People’s Bank of China has issued a joint statement with other Chinese regulators proclaiming that ICOs in China are illegal.  See the Reuters article here: China hits booming cryptocurrency market with coin fundraising ban.  The statement further directs Individuals and organizations…

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SEC Issues Release & Investigative Report on Token Sales

The SEC has issued long awaited guidance regarding token sales, also referred to as ICOs.  We will issue a summary of this guidance shortly, but in the interim please find the links to the SEC’s press release, investigative report, and public statement from the SEC’s Divisions of Corporation Finance and Enforcement….

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CFTC Fines Bitfinex For Failing To Register and Operating An Illegal Exchange

The U.S. Commodity Futures Trading Commission (CFTC), showing continued regulatory interest in digital currency companies, issued an Order and settled charges against Hong Kong-based digital currency exchange Bitfinex. The CFTC found that Bitfinex was offering illegal off-exchange financed retail commodity transactions in bitcoin and other cryptocurrencies, and failed to register…

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