The U.S. Securities and Exchange Commission (SEC) has taken action against another startup in the crypto space for selling unregistered securities. Tierion, which raised $ 25 million in a token sale, has agreed to “return money to investors” and disable trading on its token.
SEC charges Tierion on its crypto offering
Texas-based blockchain company Tierion Inc. settled the charges with the SEC for running an unregistered security offering when it sold the TNT token. The settlement followed the SEC’s order cease and desist procedure against the company. The securities regulator detailed:
Tierion has agreed to return funds to injured investors, pay a $ 250,000 fine and disable trading of its ‘tokens’ … Tierion raised approximately $ 25 million through the sale of ‘Tierion Network Tokens’ (TNT) in July 2017.
The SEC clarified that under the settlement agreement, Tierion will “provide compensation to current holders of TNT who purchased through the token sale or in the secondary market, or who received TNT as a reward from Tierion, and to those who purchased TNT in the token. and later sold at a loss. ”The company agreed to the SEC’s order without admitting or denying the regulator’s findings.
In addition, the SEC explained that Tierion had told investors that it would “ use the proceeds of the sale to fund further development of the ‘Tierion network’, which would allow Tierion to offer a ‘blockchain receive’ service and other services yet to be developed. . “The regulator finds that” TNT are securities “and that Tierion has not registered its token sale, thus violating the securities registration provisions.
Following the SEC news, TNT’s price dropped from about $ 0.0064 on December 23 to $ 0.0022 on December 26.
Tierion was awarded along with the settlement a waiver from the SEC, allowing it to complete the TNT token’s retirement, CEO Wayne Vaughan said Wednesday. He added that the TNT token is not registered as security.
What do you think of the SEC’s action against Tierion? Let us know in the comments below.
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