The Securities and Exchange Commission [SEC] of the United States of America has always been in the thick of it when it came to the cryptocurrency industry. The body has ensured that crypto companies adhere to the laws so that no malicious practices can be conducted.
Enigma, a Blockchain startup, has settled charges with the Securities Exchange Commission for selling its tokens as unregistered securities. Enigma agreed to the the settlement related to its $45 million ICO after a lot of consideration. The startup is based out of the United States and Israel with the company hitting the jackpot back in 2017.
According to the SEC’s orders, Enigma raised its valuation from the sales of ENG tokens. During the launch, the SEC had claimed that the ENG tokens were securities and that the ICO was not registered as a securities offering.
This dispute was finally put to rest when Enigma agreed to return funds to harmed investors using a claim process. The company will also have to register its tokens as securities, pay a $500,000 fine and file periodic reports with the SEC. John T. Dugan, the Associate Director for Enforcement in the SEC’s Boston office said:
“All investors are entitled to receive certain information from issuers in connection with a securities offering, whether it involves more traditional assets or novel ones. The remedies in today’s order provide ICO investors with an opportunity to obtain compensation and provide investors with the information to which they are entitled as they make investment decisions.”
Enigma accepted all of the demands of the SEC without admitting or denying any of the facts. The orders of the SEC required Enigma to cease and refrain from committing any violation of the registration provisions of the federal laws.
Enigma themselves have stated that the issue being put to rest is good for them as it opens up new avenues for development. The company’s focus will now be on improving the usability of decentralized technologies that can help society. This comes at a time when Enigma just launched its mainnet.
Enigma themselves have expressed that the issue being settled is beneficial for them as it opens up new roads for development. The organization’s focus will currently be on improving the usability of decentralized technologies that can help society. This comes when Enigma just Launched its mainnet.
The mainnet will be supported and operated by over 20 independent validators from the Enigma ecosystem and community. Enigma revealed that the mainnet is a PoS based blockchain based on the Cosmos SDK/Tendermint. The 20 participating validators signed off on the blockchain on February 13th.