SEC Files Lawsuit Against Quantstamp Over $28M Initial Coin Offering

Quantstamp has agreed to pay the fees and will refund proceeds from its 2017 ICO which raised $28 million.

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Blockchain security firm Quantamp is set to return $28 million raised in an initial coin offering (ICO) in 2017 following charges by the States Securities and Exchange Commission -United.

The US agency announced that it formally accused the California-based company on July 21 of conducting an unregistered ICO of "crypto asset securities". According to the SEC statement, Quantstamp has agreed to pay the fees.

The SEC order describes how Quantstamp's ICO, which took place in October and November 2017, raised over $28 million by selling its native QSP tokens to some 5,000 investors.

Source : SEC filing against Quantstamp

The platform intended to use its ICO product to "develop and commercialize" its automated security audit platform smart contracts. The SEC's order underscored its belief that Quantstamp was emphasizing the "great market potential" of its service, leading QSP buyers to expect the value of their tokens to fall. appreciate.

According to the SEC, Quantstamp did not register its offer and sale of QSP tokens, which the agency considered securities.

"The SEC order finds that Quantstamp violated the registration provisions of the federal securities laws. Without admitting or denying the SEC's findings, Quantstamp has accepted a cease and desist order and to pay restitution of $1,979,201, prejudgment interest of $494,314 and a civil penalty of $1 million."

The outcome of the order also provides for the creation of an "equitable fund" to return funds to affected investors. The company also agreed to transfer its own holdings of QSP tokens to the Fair Fund administrator, with the tokens to be "permanently deactivated or destroyed".

The SEC order also notes...