SEC makes Munchee refund thousands of dollars back to token buyers

“I believe that initial coin offerings – whether they represent offerings of securities or not – can be effective ways for entrepreneurs and others to raise funding, including for innovative projects.  However, any such activity that involves an offering of securities must be accompanied by the important disclosures, processes and other investor protections that our securities laws require.”

This is what the Chairman of the United States Securities and Exchange Commission recently said, according to the official website of this governmental organization. In full accordance with this, the SEC recently made Munchee, Inc. to refund tokens sold during its ICO. In another official document, the SEC tells it was the sale of unregistered securities. The company tried to say its tokens were utilities, but the order issued by the governmental financial supervision agency tells that no matter how one can call ICO tokens, they are still securities by the federal law.

The sum Munchee, Inc. planned to raise during this ICO is around 15 million USD, and 40 unspecified investors paid 200 Ether (or approximately $60,000 at the time).