The SEC fined startup Enigma $500,000 for conducting an unregistered ICO

The us securities and exchange Commission (SEC) fined the startup Enigma MPC $500,000 for an unregistered ICO held in 2017.

The SEC said the project raised about $45 million in the sale of tokens that were not registered as securities under Federal securities laws. At the same time, the ICO of the project did not fall under the exclusive conditions for exemption from registration. The SEC also demanded that Enigma cease operations to avoid further violations of Federal securities laws.

The management of the Enigma project agreed to register their ENG tokens as securities, periodically send reports to the SEC, pay a fine of $500,000, and return funds to “affected investors” who will send a corresponding application. However, Enigma does not deny or acknowledge the Commission’s charges. John Dugan, Deputy Director of the SEC’s Boston enforcement division, said:

“All investors have the right to receive certain information from issuers on the offer of securities, whether traditional or digital assets. Our legal remedies are aimed at ensuring that startups provide really complete information on the basis of which people make decisions about investing.”

Earlier this year, the SEC fined the CEO of FINTECH company Longfin $400,000 for distributing unregistered shares, and last December, for the same reason, the new York startup Blockchain of Things was fined $250,000.