The US Securities and Exchange Commission (SEC) has accused blockchain security company Quantstamp of holding an unregistered initial coin offering (ICO) of "crypto asset securities."
Quantstamp Agreed to Pay $3.4 Million After SEC Charges
The US Securities and Exchange Commission (SEC) has accused blockchain security company Quantstamp of holding an unregistered initial coin offering (ICO) of "crypto asset securities."
According to the SEC's ruling, Quantstamp failed to register the offering and sale of its QSP tokens, which the agency considered to be securities, and violated the federal securities laws' registration requirements.
The Howey Test, which it frequently uses to determine whether a cryptocurrency is a security and is therefore covered by securities laws, was cited by the SEC. The criteria were established in a 1946 case concerning orange plantations by the US Supreme Court, which also determined what constitutes an investment contract.
Through the sale of its QSP token to more than 5,000 investors, Quantstamp generated close to $28.35 million in ETH and stablecoin USD in 2017.
Without admitting or rejecting the SEC's allegations, the business has agreed to pay a total settlement of $3.4M. The SEC also created a fair fund to reimburse investors for any money paid by Quantstamp.
