Block.one (EOS) To Pay a $26 Mln Fine For Its Year 2017 ICO

At that time, Block.one raised $4 Bln through an initial coin offering, which resulted in the launch of EOS network.

What is unusual in this case — the relatively small fine that the SEC imposed on Block.one. The penalty is hardly half a percent of the amount that the company raised in the ICO. It is worth noting that over the past two years, the SEC has gained terrifying reputation in the crypto industry thanks to the campaign against ICO startups. Such Commission’s decision has puzzled crypto enthusiasts.

Gabriel SHAPIRO, lawyer and founder of ZeroLaw, tweeted:

“Honestly, I think this is a bad look for the SEC. This sends a message that violating securities laws can be quite profitable.”

Not only did Block.one avoid huge fines and rescission orders, it also shied away from registering EOS as a security. As the company noted in its statement regarding the settlement of the case, the SEC claims are strictly related to the ERC-20 token, which Block.one sold to investors during the ICO, and not the EOS token, which is currently in circulation.

The SEC has also bypassed the decision regarding EOS status to date. It seems that the actions of the regulator have become quite selective.

Image courtesy of Bitcoin Exchange Guide