Another penalty from SEC: Tierion (TNT) to pay back $ 25 million
The U.S. Securities and Exchange Commission (SEC) continues to maintain its toughness on cryptocurrencies. The agency finally decided to repay TNT tokens to its investors on the grounds that data verification startup Tierion’s $ 25 million ICO broke securities laws.
TNT owners and ICO investors who sell their tokens at a loss have 60 days to demand a financial and interest repayment from Tierion. Node operators will be able to sell their TNT back to Tierion for 0.01 cents and interest.
Tierion also has to immediately disable trading of the ERC-20 token running on the Ethereum blockchain, according to the decision announced on Wednesday. The company will also pay a $ 250k penalty to the SEC. According to the SEC, there has been no response from Tierion to any acceptance or rejection of the matter. The SEC also issued a D-regulation waiver for Tierion so that the company would not have to register future Private Securities deposits because of the deal.
350 million TNT sold to 4,800 investors
After this sanction, 1 billion TNT tokens were burned. As it should be remembered, at its ICO in 2017, Tierion positioned these tokens as a payment method among users of the “Chainpoint protocol” data verification network. Thanks to these tokens, which are an incentive, the security of the network was ensured. Tierion was said to have sold about 350 million TNT to 4800 investors.
After that, Tierion, which has also received investment from companies such as Microsoft, will continue its path without TNT. Founder and CEO Wayne Vaughn said that thanks to the agreement, Tierion can evam its way without heavy regulatory burdens, and TNT has now become a ‘retired token’:
“This announcement does not affect the availability of Tierion’s existing products or open source software.”