{"id":9623,"date":"2021-07-14T23:54:12","date_gmt":"2021-07-14T23:54:12","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/sec-charges-token-listing-website-with-unlawfully-touting-crypto-securities\/"},"modified":"2021-07-14T23:54:12","modified_gmt":"2021-07-14T23:54:12","slug":"sec-charges-token-listing-website-with-unlawfully-touting-crypto-securities","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/sec-charges-token-listing-website-with-unlawfully-touting-crypto-securities\/","title":{"rendered":"SEC Charges Token Listing Website With Unlawfully Touting Crypto Securities"},"content":{"rendered":"

The U.S. Securities and Exchange Commission (SEC) has charged a token listing website with unlawfully touting crypto securities. The site did not disclose that it was paid by the token issuers to profile their coin offerings.<\/strong><\/p>\n

SEC Charges Website Touting Security Tokens Without Clarifying Which Tokens Are Securities<\/h2>\n

The U.S. SEC announced Wednesday that a token listing website has been \u201ccharged with unlawfully touting digital asset securities.\u201d The commission also stated that it has already settled charges against the operator of the website.<\/p>\n

Coinschedule.com was a popular website that \u201cprofiled offerings of digital asset securities,\u201d the SEC described, adding that its operator was a company based in the U.K. called Blotics Ltd. The regulator explained that the website was accessible in the U.S. from 2016 to August 2019, during which time U.S. visitors comprised a significant portion of its web traffic.<\/p>\n

The website offered details of each initial coin offerings (ICOs) profiled, including links to the token issuers\u2019 websites and a \u201ctrust score.\u201d The platform claimed that this score \u201creflected its evaluation of the \u2018credibility\u2019 and \u2018operational risk\u2019 for each digital token offering based on a \u2018proprietary algorithm.’\u201d However, the commission alleged:<\/p>\n

In reality, the token issuers paid Coinschedule to profile their token offerings on Coinschedule.com, a fact that Coinschedule failed to disclose to visitors.<\/p>\n

The SEC claims that the British company \u201cviolated the anti-touting provisions of the federal securities laws by failing to disclose the compensation it received from issuers of the digital asset securities it profiled.\u201d<\/p>\n

Kristina Littman, chief of the SEC Enforcement Division\u2019s Cyber Unit, explained that \u201cCoinschedule presented potential investors with seemingly independent profiles about token offerings when in fact they were bought and paid for by token issuers.\u201d She emphasized, \u201cThe securities law prohibiting touting securities for compensation without appropriate disclosures to investors is clear and longstanding.\u201d<\/p>\n

The commission detailed: \u201cWithout admitting or denying the SEC\u2019s findings, Blotics has agreed to cease and desist from committing or causing any future violations of the anti-touting provisions of the federal securities laws, and to pay $43,000 in disgorgement, plus prejudgment interest, and a penalty of $154,434.\u201d<\/p>\n

<\/p>\n

Following the settlement, two commissioners at the SEC issued a joint statement regarding the case. Commissioner Hester Peirce and Commissioner Elad Roisman stated:<\/p>\n

We agree with our colleagues that touting securities without disclosing the fact that you are getting paid, and how much, violates Section 17(b). We nevertheless are disappointed that the commission\u2019s settlement with Coinschedule did not explain which digital assets touted by Coinschedule were securities.<\/p>\n

What do you think about the SEC\u2019s action? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nRegulation, coin listing, crypto securities, ICO, initial coin offfering, SEC, SEC charges, Securities, token listing, token securities, token website, US SEC<\/p>\n","protected":false},"excerpt":{"rendered":"

The U.S. Securities and Exchange Commission (SEC) has charged a token listing website with unlawfully touting crypto securities. The site did not disclose that it was paid by the token issuers to profile their coin offerings. SEC Charges Website Touting Security Tokens Without Clarifying Which Tokens Are Securities The U.S. SEC announced Wednesday that a…<\/p>\n","protected":false},"author":0,"featured_media":9624,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-9623","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/9623"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=9623"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/9623\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/9624"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=9623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=9623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=9623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}