SEC for years cryptocurrency It is making life a nightmare for the markets and now this nightmare will end with the arrival of Trump. This is one of the reasons for the rise in markets. However, as previously explained SEC Since the sanction satisfied the aggrieved cryptocurrency investors, it gave rise to the antonym “Investors satisfied with the SEC sanction”.
SEC and Cryptocurrencies
cryptocurrency In order to punish fraudsters in the field, institutions such as the SEC must actively do their job. Unnecessary cryptocurrency Instead of litigation, public institutions need to monitor such scammers in the crypto space. We saw a good example of this today. SEC, NFT The initiative announced that Theory would pay a penalty of $6,103,914. We will talk about the articles of this penalty, but the important part is that this money will be paid to the defrauded investors.
“On August 28, 2023, the Commission issued an order pursuant to Section 8A of the Securities Act of 1933 against Impact Theory, LLC (“Impact Theory” or the “Defendant”).
According to the decision, from October 13, 2021 to December 6, 2021, a media and entertainment company Impact Theoryoffered and sold crypto asset securities known as Founder’s Keys (“KeyNFTs”) in the form of so-called NFTs, valued at approximately $29.9 million from at least hundreds of investors, including investors in the United States. ether (“ETH”) collected.”
In those days, this case did not attract much reaction because there were victims and SECHe should have done what he did not do in the FTX incident and solved the problem. And so it was. The announcement document just published includes the following details:
“The Commission finds that Impact Theory violated Sections 5(a) and 5(c) of the Securities Act by offering and selling these securities without having filed a registration statement with the Commission or before it is in force or before it qualifies for a registration exemption.” . The Commission ordered the Defendant to pay the Commission a total of $6,103,914.17, including damages of $5,120,718.27, prejudicial interest of $483,195.90, and a civil penalty of $500,000.00. The Commission also established an Equitable Fund under Section 308(a) of the Sarbanes-Oxley Act of 2002 to ensure that the penalty collected, as well as the disgorgement and contingency interest collected, is distributed to injured investors.”
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
