Coinfomania: Where blockchain and cryptos live.

Enigma (ENG) Settles SEC Charges Over $45M ICO Raise; Pays $500,000 Penalty

The United States Securities and Exchange Commission (SEC) announced today that it had settled charges against blockchain-based project Enigma MPC, with the San Francisco and Israel-based startup set to pay a $500,000 for its initial coin offering (ICO) back in 2017.

The SEC had alleged in its initial order that the Enigma (ENG) tokens which the project sold to investors during its ICO qualified as securities under U.S laws, and the team had failed to register their offering with the regulator before the issuance.

Following today’s settlement, Enigma has agreed not only to pay a $500,000 penalty but also to refund investors via a claims process, register its tokens as securities, and even file periodic reports with the U.S SEC going forward.

Notably, although the Enigma settlement isn’t the first involving the SEC and crypto-related projects that raised funds during the 2017 ICO mania, it stands out as among a few in which the regulators have demanded that earlier investors received a sort of compensation.

John T. Dugan, Associate Director for Enforcement in the SEC’s Boston Regional Office said in today’s release:

The remedies in today’s order provide ICO investors with an opportunity to obtain compensation and provide investors with the information to which they are entitled as they make investment decisions.

Enigma (ENG) Price Performance: Stable

As shown in the chart below, news of Enigma MPC settling charges with the SEC has arguably had a positive effect on the price movement of its token, which is currently ranked 132nd on CMC, with a market cap of $35.9 million.

enigma-charts

ENG was trading at $0.48 at the time of writing, marking a 3% increase in the last 24 hours.

 

Affiliate:  Get a Ledger Nano X for $119 So That Hackers Won't Steal Your Crypto!

Follow us on Twitter, Facebook, and Telegram to receive timely updates. Subscribe to our weekly Newsletter.