The US SEC filed a lawsuit against Dragonchain

[US SEC files lawsuit against Dragonchain] Jinse Finance reported that according to a document filed by the U.S. District Court for the Western District, the U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against blockchain startup Dragonchain, claiming that it failed to sue Dragonchain for more than five years. $16 million initial coin offering (ICO) to register. The complaint alleges that CEO John Roets and three Dragonchain-related companies violated the Securities Act by raising millions of dollars in a 2017 ICO by selling Dragon (DRGN) tokens. The company then invested the funds in its marketing and development activities, according to the SEC.

Seattle-based Dragonchain, an enterprise blockchain startup founded by Disney in 2017, forced one of its affiliate projects, Lagon, to return ICO investors’ funds in 2018 following concerns over a regulatory crackdown from the SEC.

Other news:

The US SEC issued a warning to investors on interest-bearing cryptocurrency accounts: On February 16th, the US Securities and Exchange Commission (SEC)'s Office of Investor Education and Publicity announced on Monday that they have jointly issued an investor announcement, " To educate investors about the risks of accounts that pay interest on deposits of cryptoassets”. The SEC explained that “companies that offer interest-bearing accounts for crypto assets do not provide investors with the same protections as banks or credit unions, and crypto assets sent to these companies are not currently insured.”

On the same day, the SEC announced that it had charged cryptocurrency lending platform Blockfi with failing to register its cryptocurrency lending products. And Blockfi has agreed to pay a $100 million fine to settle charges with the SEC and 32 state regulators. (News bitcoin)[2022/2/16 9:55:18]

The US SEC issued a statement on the issue of broker-dealers' custody of digital assets: Jinse Finance reported that the US Securities and Exchange Commission today issued a statement on the issue of broker-dealers' custody of digital asset securities and requested relevant comments. Most notably, the announcement will exempt broker-dealers operating under certain circumstances from SEC enforcement action for the next five years. Specified "circumstances" whereby broker-dealers are required to maintain security tokens as the primary focus of their operations and to conduct due diligence in terms of cybersecurity and disclosure to clients, including ensuring that each potential client is aware that the broker-dealer involved is dealing with Digital asset securities. [2020/12/24 16:19:18]

Voice | Lawyer: US SEC's consent order in ICO case shows that nonexistent SAFT tokens may actually be securities: US SEC signs consent order against Simple Vital Health, Inc. settlement proposal for unregistered securities offering case. The SEC describes both the Simple Agreement for Future Tokens (SAFT) and future pledged tokens as securities. No civil penalties were ordered due to voluntary compliance with SEC requirements not to hold ICOs and to return investor funds. According to the consent order, SimplyVital told investors and the public in 2017-2018 that it was developing the blockchain protocol Health Nexus. SimplyVital stated that in order to raise funds to develop the protocol, it will conduct a token sale for dHealth Cash (HLTH), the currency that will be used in the ecosystem in the future, and plans to issue 200 million HLTH. Before the sale begins, SimplyVital conducts a pre-sale, offering a SAFT that will deliver the tokens once SimplyVital creates them. Prior to offering and selling HLTH through the SAFT, SimplyVital did not file a securities law registration statement with the SEC covering its offering and sale, and the SEC said no exemption was available. The main crowdfunding campaign was arranged after SimplyVital completed the pre-sale. SEC staff contacted the company, which decided not to proceed. The company has yet to create any tokens or deliver any to the SAFT pre-sale buyers. [2019/8/18]