SEC Settles Charges with Block One of EOS

America’s Securities and Exchanges Commission (SEC) has just announced settled charges against Block.one, the company behind EOS, for raising billions in an ICO in 2017 over approximately one year.

“The company agreed to settle the charges by paying a $24 million civil penalty,” SEC said.

“Block.one did not provide ICO investors the information they were entitled to as participants in a securities offering,” said Steven Peikin, Co-Director of the SEC’s Division of Enforcement.

Block One consented to the order without admitting or denying its findings, the regulator said. They do not specify any other action against the company or EOS.

Block One said the “settlement relates specifically to the ERC-20 token sold on the Ethereum blockchain… which is no longer in circulation or traded, and will not require the token to be registered as a security with the SEC. The settlement resolves all ongoing matters between Block.one and the SEC.

The SEC has simultaneously granted Block.one an important waiver so that Block.one will not be subject to certain ongoing restrictions that would usually apply with settlements of this type.”

So it appears they just had to pay $24 million for raising an estimated $4 billion in violation of securities regulations with seemingly no further action to be taken.