SEC has raised $1.26 billion for illegal ICOs since early 2020

12.11.2020
«first-p»> Since early 2020, the U.S. Securities and Exchange Commission (SEC) has collected over $4.68 billion in fines and confiscated illegal income. More than a quarter of this amount came from Telegram.

This was reported by Stephanie Avakian, head of SEC’s Digital Asset Enforcement Department, adding that $4.68bln is the highest amount of fines in the department’s history.

Of the amount collected by the SEC, $1.26 was paid by the organizers of unregistered ICOs. And almost the whole amount falls on Telegram, which was accused by the Commission of illegally conducting the ICO project TON. Last October, the SEC filed a lawsuit against Telegram, claiming that Gram tokens are securities. It ended up with a court blocking their distribution to all investors, and in May 2020, Pavel Durov announced the termination of work on the Telegram Open Network (TON) platform. Telegram has agreed turn $1.2 billion to investors and pay a fine of $18.5 million

Last year, the SEC also filed a complaint against the Kik messenger for selling unregistered KIN tokens in violation of US law. The parties reached an agreement under which Kik href=»https://bits.media/sec-i-kik-dogovorilis-ob-uregulirovanii-pretenziy/»>forever obliged to pay a $5 million fine. About $40 million was confiscated by the agency in the course of proceedings against Bitclave, Shopin, NAC Foundation, Unikrn, Boon Tech and Bitcoiin2Gen cryptographic projects. However, the case with the NAC Foundation is still pending as the Foundation filed a petition with the San Francisco Supreme Court to dismiss the SEC’s complaint, claiming that the Commission misled the court;

Report SEC, in total the Commission initiated 715 cases and also took independent enforcement actions against 405 firms. They were accused of illegal offering of securities, insider trading, market manipulation and violation of the Anti-Corruption Act abroad.

Of the $4.68 billion received by the SEC, $600 million was returned to affected investors. Under the SEC’s investor detection and protection program, 39 whistleblowers received awards totalling $175 million, while three weeks ago the agency awarded one whistleblower a $114 million
award;

It should be noted that this month the SEC increased the limits of raising funds by companies without registering an investment prospectus, which will make it easier for them to place token shares (STO);