Ever wonder how much the SEC has made from the 2017 post-DAO blockchain hysteria? It looks to me like they have disgorged $2,581,000, fined $1,483,682 in civil penalties, and $38,429 in taxes. Here’s a summary of the federal action: : Founders agreed to return to 40 community members. Munchee stated in their white paper that they were not a Security, and aggressively promoted their ICO claiming MUN tokens could achieve 199% gains. . Munchee, Inc. December 11, 2017 $60,000 See https://www.sec.gov/news/press-release/2017-227 : The SEC filed this case against founders Sam Sharma, Robert Farkas, and Raymond Trapani, but it is stayed until the criminal trial is concluded. Centra Tech allegedly lied to investors about their product being associated with Visa, Mastercard and Bancorp, said they had 38 Money Transmission licenses, and made up a fake advisory board. . Centra Tech, Inc. April 2, 2018 See https://www.sec.gov/news/press-release/2018-53 : Results are pending in Federal District Court in LA. Titanium lied about business relationships with the Federal Reserve, Paypal, Verizon, Boeing and others. They compared investing in their ICO to investing in Google. . Titanium Blockchain Infrastructure Services, Inc. May 29, 2018 See https://www.sec.gov/news/press-release/2018-94 The SEC filed this case in New York. An attorney and his law firm’s business manager made $1.4 million selling restricted shares for $21–48 when they were restricted to a price of $3.70. The price shot up after “blockchain” was added to the name. Defendants agreed to return of their ill-gotten gains, and pay in penalties, subject to court approval. . UBI Blockchain Internet, Ltd. July 2, 2018: $1.4 million $188,682 See https://www.sec.gov/news/press-release/2018-126 : The founder was ordered to pay a civil penalty of . He made false claims that he had an oil drilling license and that token owners could convert their air dropped tokens into equity to profit from the proposed oil production and trading. The marketing material said the founder had a “flawless track record” and failed to disclose his prior criminal convictions for fraudulent securities offerings. . Tomahawk, August 14, 2018 $30,000 See https://www.sec.gov/litigation/admin/2018/33-10530.pdf This hedge fund falsely represented that they were the first regulated crypto asset fund in the US. They agreed to the SEC’s cease-and-desist order and paid a penalty of $ . Crypto Asset Management, LLC, September 11, 2018: 200,000. See https://www.sec.gov/news/press-release/2018-186 : This unregistered broker dealer handled thousands of investor orders for ICOs. They agreed to a $ disgorgement penalty and prejudgment interest of Each of the website’s founders, Kugel and Lewitt were assessed a civil penalty of . . Token Lot, September 11, 2018 471,000 $7,929. $45,000 See https://www.sec.gov/litigation/admin/2018/33-10543.pdf 1Broker, a company registered in the Republic of the Marshall Islands, and its CEO Patrick Brunner, of Austria, allegedly solicited investors from the United States and around the world to buy and sell security-based swaps. Brunner allegedly failed to register a national securities exchange to sell the security-based swaps. The last update on Pacer is that he has waived the requirement for service. The Answer to the SEC’s complaint is due December 10, 2018. CEO of 1Broker, September 27, 2018: Blockvest falsely claimed to have SEC approval and created a fake agency with a similar logo to the SEC’s calling it the “Blockchain Exchange Commission.” The SEC sought civil penalties and disgorgement of ill-gotten gains. Blockvest fought back and it’s progressing in the Southern District of California. . Attorney Marco Santori had some interesting comments on the November 27, 2018 order denying SEC’s motion for preliminary injunction. . Blockvest, LLC, October 11, 2018: See https://www.sec.gov/news/press-release/2018-232 See https://twitter.com/msantoriesq/status/1068246911533092866?s=12 Without admitting or denying the findings, EtherDelta’s founder, Zachary Coburn, consented to the order and agreed to pay in disgorgement plus in prejudgment interest and a penalty. . EtherDelta, November 8, 2016: $300,000 $13,000 $75,000 See https://www.sec.gov/news/press-release/2018-258 SEC Ordered each ICO to pay penalties & undertakings to compensate harmed investors who purchased tokens in the illegal offerings. The companies have to register their tokens as securities pursuant to the Securities Exchange Act of 1934 and file periodic reports with the Commission for at least one year. Airfox and Paragon, November 16, 2018: $250,000 See https://www.sec.gov/news/press-release/2018-264 In connection with Centra Tech promotion, Mayweather agreed to pay in disgorgement, a penalty, and in prejudgment interest. DJ Khaled agreed to pay $50,000 in disgorgement, a $100,000 penalty, and in prejudgment interest. Flloyd Mayweather & DJ Khaled, November 29, 2018: $300,000 $300,000 $14,775 $2,725 See https://www.sec.gov/news/press-release/2018-268 What’s coming next? Checkout the DJ Khaled sticker pack on telegram.
