SEC files charges against Quantstamp for $28M initial coin offering

Blockchain information steadfast Quantamp is acceptable to instrumentality $28 million  raised successful a 2017 archetypal coin offering pursuing charges brought by the United States Securities and Exchange Commission (SEC).

The U.S. bureau announced that it had formally charged the California-based steadfast connected July 21 for conducting an unregistered archetypal coin offering of “crypto plus securities”. According to the connection from the SEC, Quantstamp agreed to settee the charges.

The SEC’s bid outlines however Quantstamp’s ICO, which took spot successful October and November 2017, raised implicit $28 cardinal by selling its autochthonal QSP tokens to immoderate 5,000 investors.

Source: SEC filing against Quantstamp.

The level intended to usage its ICO proceeds to “develop and market” its automated astute declaration information auditing platform. The SEC bid highlighted its content that Quantstamp emphasized the “large marketplace potential” of its service, which led to QSP buyers to expect the worth of their tokens to admit successful value.

According to the SEC, Quantstamp failed to registry its offering and merchantability of QSP tokens, which the bureau deemed to beryllium securities.

“The SEC’s bid finds that Quantstamp violated the registration provisions of the national securities laws. Without admitting oregon denying the SEC’s findings, Quantstamp agreed to a cease-and-desist bid and to wage disgorgement of $1,979,201, prejudgment involvement of $494,314, and a civilian punishment of $1 million.”

The result of the bid besides provisions the constitution of a “Fair Fund” to instrumentality funds to affected investors. The steadfast besides agreed to transportation its ain QSP token holdings to the Fair Fund administrator, with the tokens acceptable to beryllium “permanently disabled oregon destroyed”.

The SEC bid besides notes that Quantstamp nary longer operates oregon actively supports the automated astute declaration information auditing pursuing its deployment successful June 2019.

Cointelegraph has reached retired to Quanstamp for further details pursuing the SEC’s Order.