The SEC has settled charges against two companies that sold digital tokens in ICOs. These are the commission’s first cases imposing civil penalties solely for ICO securities offering registration violations. Both companies have agreed to return funds to harmed investors, register the tokens as securities, file periodic reports with the commission, and pay penalties.
According to the SEC’s orders, both CarrierEQ (Airfox) and Paragon Coin conducted ICOs in 2017 after the SEC warned that ICOs can be securities offerings in its DAO Report of Investigation.
