Three initial coin offering (ICO) companies have missed Securities and Exchange Commission (SEC) deadlines to repay investors, including Gladius Network, Paragon, and Airfox.
Collectively these companies owe USD 40 million to the investors who participated in the ICOs, since the SEC ruled that the investors must be refunded, in addition to the companies being required to register their tokens as securities with the SEC. The Paragon and Airfox cases were actually considered the seminal cases on ICOs, since the SEC declared that ICO companies prosecuted in the future would be treated in a similar way.
However, by the time the SEC ruled on the ICO cases, the companies had already spent most of the investor’s money. Airfox owes USD 15.4 million to investors and only has USD 6.1 million of assets, while Paragon is in an even worse position with USD 14.9 million of liabilities but only USD 95,000 of assets.
Paragon and Airfox received reduced fines of USD 250,000 each for agreeing to deadlines for repaying investors, and Gladius received no fine because it self-reported its violations. It is unclear if the severity of the fines will be increased now that these companies have missed their deadlines, and it is also unclear what will happen next.
Image Courtesy: Pixabay
The post 3 ICO Companies Miss SEC Deadlines for Repaying Investors appeared first on BitcoinNews.com.