Block.One agreed to pay a $24 million fine to reach a settlement with the SEC. Is EOS the biggest benefit?
According to the news released by the SEC official website on October 1, the US Securities and Exchange Commission (SEC) announced a settlement with blockchain company Block.one. The SEC previously accused the latter of conducting unregistered ICO activities, raising a total of 41 in a year. Billion dollars, and the condition of the settlement is that Block.one will pay a fine of 24 million US dollars.
And this fine is equivalent to 5.8 per thousand of Block.one's total financing.
Obviously, Block.one agreed to the deal.
(Photo: CEO of Block.One)
It is worth noting that the SEC emphasized that Block.One started the token sales activity before it released the DAO report. The company was not involved in the registration of the securities registration and did not register its sales activities, so it was suspected of violating the rules.
In the press release issued by Block.One itself, the settlement is applicable to the original sale of ERC-20 tokens. After the EOS main online line, the EOS holder exchanged the original ERC-20 token for the main currency.
Block.One stated that its ERC-20 token is no longer in circulation and does not require the registration of tokens as securities under SEC. In addition, this settlement resolves all ongoing transactions between Block.One and the SEC.
Block.One also added:
“The SEC also approved an important exemption for Block.one, so Block.one will not be subject to certain current restrictions that would normally apply to such agreements.”
In June of this year, Block.One announced that it will create a decentralized social network Voice. The details of the release of the project have been few. After the market generally speculated that the governance problems faced by EOS hindered this progress. Now, perhaps The bigger reason is because of compliance issues.
Just last week, the Virginia government granted Block.One a $600,000 grant to help establish its headquarters in the suburb of Arlington, Washington, USA, which is seen as a step toward EOS's approach to compliance.
The settlement between Block.One and the SEC means that the largest mine of EOS has been removed.