Ripple is not alone: here are the crypto giants who previously got into trouble with the SEC
Earlier this week, the U.S. Securities and Exchange Commission (SEC) formally filed a lawsuit against blockchain giant Ripple. The SEC accused the company of selling unregistered securities in the form of XRP. So, who and which companies have the SEC previously indicted in the crypto industry? Here are some of the industry giants the SEC has sued before:
2019: SEC sued Bloc.one
On September 30 last year, EOS creator Block.One issued a memo saying they had settled the SEC’s charges with some money. The commission’s reason for accusing Block.one was the same as Ripple’s – to raise funds by selling unregistered securities and raising billions of US dollars.The fine was 0.58 percent of the amount collected during an ICO in 2017: $ 24 million.
Block.one in response, without admitting or denying the charge, agreed to pay the fine. However, the company’s press release stated that the ERC-20 token was no longer in circulation (EOS had switched from ETH to its own main network in mid-2018) and that they had nothing to register as a securities with the SEC.
2020: SEC sues John McAfee over fake ICOs
On October 5, CNBC published an article stating that the U.S. Securities and Exchange Commission had accused crypto baron John McAfee of promoting crypto offerings on Twitter over the past few years. McAfee earned more than $ 23.1 million through advertising ICOs on his Twitter page, according to data from the SEC. These token proposals are “materially false and misleading,” CNBC wrote. McAfee is currently in a Spanish prison awaiting a court ruling on whether he will be extradited to the United States. He is also charged with tax evasion.
McAfee has allegedly been avoiding tax payments for the past few years. According to tweets from his now wife Janice McAfee, John is having health problems in prison. But despite his wife’s constant demands, he has yet to receive medical attention.
Other companies sued by SEC except for Ripple in 2019, 2020
It was recently announced that the Kik crypto platform has settled a lawsuit launched by the SEC in 2019, paying a $ 5 million penalty. The regulator acknowledged that the platform’s local token, kin, is a non-securities entity. Bitcoin and Ethereum were given a similar “permit.” The Kik team sent Ripple a message via Twitter, expressing its sympathy as a company sued by the SEC.
Stefan Qin, founder of crypto fund Virgin Capital, has also been charged by the SEC with crypto fraud.