The US Securities and Exchange Commission (SEC) filed charges for Quantstamp’s 2017 ICO.
The SEC’s pressure on the cryptocurrency industry continues to increase. However, the SEC has now filed a charge against Quantstamp’s 2018 ICO.
SEC files accusations over Quantsptamp’s ICO
The SEC has filed charges against Quantstamp for its $28 million ICO in 2017. Following these accusations, Quantstamp agreed to pay the fees and will reimburse the proceeds from the ICO.
Quantstamp has been accused by the U.S. Securities and Exchange Commission (SEC) of conducting an unregistered “crypto-asset securities” ICO. The company agreed to settle the SEC’s accusations by agreeing to cooperate.
As a result of the SEC’s review, it was determined that Quantstamp’s ICO, which took place in October and November 2017, has raised over $28 million by selling it to approximately 5,000 investors. With these funds, the company aimed to develop and market its automated smart contract security auditing platform.
Quantstamp’s emphasis on the huge market potential of its service has led investors to expect the value of QSP tokens to increase. However, according to the SEC, Quantstamp did not record the offering and sale of these tokens. However, this violated the registration provisions of the federal securities laws.
The SEC’s decision is that Quantstamp pleads guilty and agrees to establish a “Fair Fund” to return funds to affected investors. It has also been stated that the company will permanently disable or destroy its own QSP token holdings.
The SEC order also states that Quantstamp no longer runs or supports automated smart contract security auditing.
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