SEC fines a digital currency company with 50,000 USD penalty for selling illegal securities

SEC fines a digital currency company with 50,000 USD penalty for selling illegal securities
Dec 8, 2018 by Rico Wise

CoinAlpha Advisors LLC, which is the name of the digital currency investment fund, is a blockchain financial products firm located in Delaware, which was additionally fined by the Commission for the amount of 50,000 USD.

As per the cease and desist order, CoinAlpha refused to perform the registration of its business operations, which included money contributions to and distribution of digital currency assets, as demanded by the federal legislation. The firm, as per the regulator’s notice, had filed an application for a distribution license exemption, which failed to meet the requirements for its approval. In spite of the said failure, CoinAlpha proceeded with its business activities, violating the prescriptions of the federal legislation of the United States.

The Commission has also established the fact that the accused company failed to take measures sufficient enough to make sure that all of its financiers possessed proper accreditation. The firm solicited these financiers via its official web page, blog posts, social media interviews, and cryptocurrency and blockchain conferences. The result of such negligence was that 22 financiers had already contributed as much as 608,491 USD to the digital currency fund created by CoinAlpha. Nevertheless, when the SEC’s operatives came to the registered office of CoinAlpha, the firm cooperated and exercised the liquidation of its fund.

Due to the fact that CoinAlpha was compliant with the policies of the Securities and Exchange Commission subsequent to receiving the notice, the policymaker decided on the minimal punishment on the firm, which involved the aforementioned fine and return of money to those financiers, who contributed them. Despite the fact of CoinAlpha’s compliance, the firm still has not provided neither admission nor denial of the SEC’s accusations against it.

Linked pages
Related companies
U.S. Securities and Exchange Commission
Rating
3 of 486
Tether is a full-service marketing company delivering complete strategies for small independent specialty business
Rating
121 of 486
Projects
NameRatingType
AlphaCoin
Coin