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The US Securities and Exchange Commission (SEC) has issued a cease and desist order against Shipchain and ordered it to pay a penalty of $2.05 million. Additionally, the regulator has directed Shipchain, a shipping and logistics company, to transfer Ship tokens in the possession or control of the company\u2019s directors to a \u201cfund administrator.\u201d<\/strong><\/p>\n In a statement<\/a> announcing the cease and desist order, the SEC alleges that Shipchain, which \u201cpromoted its company and the ICO through various media,\u201d raised $27.6 million from a pre-sale held towards the end of 2017 and early 2018. The regulator explains:<\/p>\n In total, Shipchain sold approximately 145 million Ship tokens to over 200 people or groups of people, including U.S. persons, for approximately $27.6 million (comprised of fiat currency and digital assets, such as Bitcoin or Ether, valued at the time of receipt).<\/p>\n<\/blockquote>\n The SEC insists that \u201ctoken purchasers had a reasonable expectation of profits based on the efforts of Shipchain.\u201d This expectation, as well as Shipchain\u2019s many promises to buyers, means the Ship token sale met the threshold of a security offering. Yet according to the SEC:<\/p>\n Shipchain\u2019s offer and sale of Ship tokens was not registered with the Commission, nor did Shipchain\u2019s offer and sale of Ship tokens satisfy any valid exemption from registration.<\/p>\n<\/blockquote>\n Accordingly, the regulator says the Ship token pre-sale violated Section 5(a) and 5(c) of the Securities Act which forbids the soliciting for funding without registration and approval by the SEC.<\/p>\n <\/ins> <\/ins> <\/p>\n In the meantime, Shipchain has agreed to cooperate with the SEC by undertaking to assist in the process of permanently disabling the Ships tokens. The company has also agreed to publicize the cease and desist order on its website and via the company\u2019s social media channels \u201cwithin 10 days of the date of this Order.\u201d<\/p>\n In the meantime, the SEC statement states the Shipchain\u2019s executives have \u201cdecided to cease all operations\u201d due to the fact that \u201cthe penalty represents substantially all of Shipchain\u2019s net assets.\u201d<\/p>\n Do you agree with the SEC charges and the penalties imposed on Shipchain? You can share your views in the comments section below.<\/strong><\/em><\/p>\n The post The US SEC Fines Shipchain $2 Million for Conducting an Unregistered Token Offering: Company Agrees to Cease Operations<\/a> appeared first on Bitcoin News<\/a>.<\/p>\nUnregistered Token Sale<\/h2>\n
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Shipchain Ceasing All Operations<\/h2>\n