The regulator charged six promoters in May, and as per a new report, it’s set to settle with four of these, with penalties ranging from $526,000 to $3 million.
In a regulatory filing with the U.S. Securities and Exchange Commission, the company revealed it’s facing the penalties over issues related primarily to anti-money laundering and cybersecurity.
Credit Suisse and broker-dealer Instinet have used the Paxos blockchain settlement service to complete an equities trade within 24 hours.
BitPay is accused of allowing users in North Korea, Sudan, Syria, Ukraine, Cuba and Iran to transact on its platform despite having IP addresses and other location data about these users.
The SEC has reportedly accepted an offer of settlement from ShipChain over the firm’s ICO, which raised $27.5 million through the sale of proprietary tokens, known as SHIP tokens.
Alex Leigl, the CEO of Layer1 Technologies has been embroiled in a legal battle with the firm’s founders, culminating in a settlement that sees him leave the firm he has led since 2018.
In 2017, the XTZ ICO raked in a whopping $232 million and was considered the largest token sale at the time. However, months later, the ICO participants banded together to file a class-action lawsuit against Tezos. The legal battle between Tezos and its ICO investors has gone on for years, but the company has finally settled.
Because the court ruled in favor of the plaintiffs, Tezos will be paying its investors a total of $25 million in damages. The key figures in the lawsuit are set to receive between $5,000 and $7,500, the plaintiff’s lawyers will receive $8 million in legal fees, and the other $16.5 million will be distributed to token sale participants who have experienced a loss due to their investment in the so-called digital currency. It’s also important to note that no settlement money will be distributed to ICO investors who profited off of their Tezos investment.
Was it a securities sale?
Interestingly, although the court sided with the plaintiffs in the case, the court did not make any sort of decision regarding whether or not the Tezos ICO was an illegal securities sale. Although Tezos paid the settlement fee, they also made it clear that:
“The Foundation continues to believe the lawsuits were meritless and continues to deny any wrongdoing. However, lawsuits are expensive and time-consuming, and it was decided that the one-time financial cost of a settlement was preferable to the distractions and legal costs associated with continuing to fight in the courts. The Tezos Foundation chose to settle all claims because the Tezos Foundation believes it is in the best interest of the Tezos project and community as a whole.”" title="Tezos settles ICO lawsuit for $25 million" />
No settlement money, however, will be distributed to ICO investors who profited off of their Tezos investment.
A final judgment filed shows that the SEC and Telegram have reached terms of settlement over Telegram’s illegal securities sale.