SEC Halts $15 Million ICO of Munchee App, Alleges Being Regulated Security
- Munchee’s case is the second to be brought by the SEC’s new cyber unit.
The US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) has halted a fast-moving Initial Coin Offering (ICO) Initial Coin Offering (ICO) An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco Read this Term) that was seeking to raise up to $15 million from thousands of investors to develop an iPhone app for restaurant meal reviews.
California-based company Munchee Inc agreed to stop its ICO and refund investor proceeds after the SEC released a report stating that its 'MUN tokens' fit the hallmarks of a security, the agency said on Monday.
The US top regulator warned investors against throwing money into the crowdsale because the company intended to launch a cryptocurrency-based investment scheme without even attempting to follow US securities laws.
Specifically, the company’s marketing activities unlawfully and publicly touted several claims to lure investors to their tokens, which gave the SEC “a reasonable belief that their investment in tokens could generate a return on their investment.” This included Munchee saying that it will promote the tokens to be exchanged for meals at many restaurants, and to take steps to create a secondary market, which may help the tokens increase in value.
“In deciding not to impose a penalty, the Commission recognized that the company stopped the ICO quickly, immediately returned the proceeds before issuing tokens, and cooperated with the investigation,” said Stephanie Avakian, co-director of the SEC’s enforcement division.
The developer of the restaurant review app consented to the SEC’s cease-and-desist order without admitting or denying the findings.
Munchee’s case is the second to be brought by the SEC’s new cyber unit, which was created in September to target violations involving distributed ledger technology and initial coin offerings as part of a new effort to fight cyber-crime.
Earlier last week, the SEC charged PlexCoin ICO organizer Dominic Lacroix, who raised $15 million by soliciting investors from the US and Canada, with illegally profiting from defrauding customers through off-market investment pools.
The US Securities and Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term Commission (SEC) has halted a fast-moving Initial Coin Offering (ICO) Initial Coin Offering (ICO) An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco An Initial Coin Offering (ICO) is a kind of crypto token sale that is used as a method of fundraising, similar to an Initial Public Offering (IPO), in which stocks are sold to raise money for a company.In order to launch an ICO, a company simply needs to create a website, issue a token, and set a time and date for the sale. Investors buy ICO tokens in exchange for another cryptocurrency, like Bitcoin or Ethereum; after a set amount of time, they receive the tokens they purchased in the sale.Acco Read this Term) that was seeking to raise up to $15 million from thousands of investors to develop an iPhone app for restaurant meal reviews.
California-based company Munchee Inc agreed to stop its ICO and refund investor proceeds after the SEC released a report stating that its 'MUN tokens' fit the hallmarks of a security, the agency said on Monday.
The US top regulator warned investors against throwing money into the crowdsale because the company intended to launch a cryptocurrency-based investment scheme without even attempting to follow US securities laws.
Specifically, the company’s marketing activities unlawfully and publicly touted several claims to lure investors to their tokens, which gave the SEC “a reasonable belief that their investment in tokens could generate a return on their investment.” This included Munchee saying that it will promote the tokens to be exchanged for meals at many restaurants, and to take steps to create a secondary market, which may help the tokens increase in value.
“In deciding not to impose a penalty, the Commission recognized that the company stopped the ICO quickly, immediately returned the proceeds before issuing tokens, and cooperated with the investigation,” said Stephanie Avakian, co-director of the SEC’s enforcement division.
The developer of the restaurant review app consented to the SEC’s cease-and-desist order without admitting or denying the findings.
Munchee’s case is the second to be brought by the SEC’s new cyber unit, which was created in September to target violations involving distributed ledger technology and initial coin offerings as part of a new effort to fight cyber-crime.
Earlier last week, the SEC charged PlexCoin ICO organizer Dominic Lacroix, who raised $15 million by soliciting investors from the US and Canada, with illegally profiting from defrauding customers through off-market investment pools.