The US Securities and Exchange Commission (SEC) accused the Russian analytical agency ICO Rating of violating the provisions prohibiting the promotion of ICOs and fined it in the amount of $268,998.
The SEC stated that ICO Rating violated the provisions specified in section 17(b) of the Securities Act of 1933 and did not disclose payments received from the issuers of the initial coin offerings that were published and received ratings on the platform. Melissa HODGMAN, Associate Director of the SEC’s Enforcement Division, said:
“The securities laws require promoters, including both people and entities, to disclose compensation they receive for touting investments so that potential investors are aware they are viewing a paid promotional item. [...] This requirement applies regardless of whether the securities being touted are issued using traditional certificates or on the blockchain.”
Without acknowledging or refuting the conclusions of the SEC, ICO Rating allegedly agreed to cease and desist from committing any violations of these provisions in the future. It will also pay disgorgement and prejudgment interest of $106,998 and a civil penalty of $162,000.
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