The U.S. Securities and Exchange Commission (SEC) has filed a new lawsuit over an alleged unregistered security offering. cryptocurrency more targeted its establishment.
SEC Sues Cryptocurrency Company Chicago Crypto Capital And Altcoin BXY For Selling Unregistered Securities
The SEC is attempting to illegalize the $1.5 million initial coin offering (ICO) for Chicago Crypto Capital’s BXY tokens, according to a September 14 legal action.
The institution seeks reimbursement or refund of all investor funds, as well as penalties.
The ICO in question took place between August 2018 and November 2019, long after the SEC’s landmark 2017 DAO Report that ICOs can be securities offerings.
The SEC claimed that Chicago Crypto Capital, which describes itself as a consulting firm “created to explore the new world of decentralized finance”, functions as an unregistered broker-dealer when offering BXY to retail investors.
BXY peaking at around $0.02 when launched in September 2019 altcoin It is currently worth approximately $0.001002.
The SEC is still actively pursuing lawsuits against firms that were part of the 2017-2018 ICO boom, but such actions have greatly stifled the market for new offerings and the market’s supplies have shrunk.
SEC chairman Gary Gensler is demanding that all cryptocurrency companies and token issuers be registered with the SEC as a securities issuer. However, Gensler bitcoin and Ethereum considers almost all crypto-assets to be securities.
*Not investment advice.
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