American authorities are clamping down on ICOs

The SEC in America has been sending out subpoenas…

One of the common complaints levelled against some initial coin offerings (ICOs) is that they simply fail to meet the promises they set out at the very start, when they’re on the hunt for investment. That whilst riches and rewards may be promised, there’s a subset of ICOs that, well, don’t deliver on that.

The American Securities and Exchange Commission (SEC) takes a pretty dim view of cryptocurrency at the best of times. Now, though, the SEC has stepped up its work in clamping down on ICOs that fall foul of its all-seeing eye.

News has broken of the SEC now getting to the stage of sending further subpoenas to a bunch of companies that it feels hasn’t delivered on what they promised. It had previously sent out a bunch back at the start of the year. Now, several companies who were targeted first time around have received further notices. On top of that, a whole of new firms have also fallen into the crosshairs of the SEC.

Each of them has in some way failed to live up to the promises of their ICOs, and the SEC has been pushing them to sort things out. In a number of unnamed cases, the companies concerned have already agreed to refund investors, and pay a fine. However, not everyone on the receiving end of a subpoena is exactly sure what it is the SEC is asking for, as per a new report at Yahoo! Finance. They argue that the SEC isn’t necessarily being clear as to its demands and how to settle them.

Inevitably, the names of the companies concerned are under wraps, not least because subpoenas are involved. When one breaks cover, though, we’ll let you know…

Image: BigStock

Comments are closed.