The U.S. Securities and Exchange Commission announced on Monday that it has reached a settlement with Block One to address the company’s unregistered initial coin offering for its EOS project. The firm reportedly raised $4 billion in an ICO conducted from June 2017 until June 2018. Block One agreed to pay a monetary penalty of $24 million.
According to the SEC, the firm’s ICO began prior to the commission’s release of the DAO Report of Investigation but continued for almost a year after that release. The company failed to register its ICO as a securities offering, and took no steps to obtain an exemption from registration.
SEC Division of Enforcement co-director Steven Peikin stressed the agency’s commitment to ensuring that investors like those who participated in the EOS ICO have the information they need to make sound decisions:
“Block.one did not provide ICO investors the information they were entitled to as participants in a securities offering. The SEC remains committed to bringing enforcement cases when investors are deprived of material information they need to make informed investment decisions.”