The US Securities and Exchange Commission (SEC) has taken action against another startup in the crypto room in order to sell unregistered securities. Tierion, which raised $ 25 million in a token sale, has agreed to “return money to investors” and disable trading on its token.
SEC files charges against Tierion over its crypto offering
Texas-based blockchain company Tierion Inc. has settled fees with the SEC for performing an unregistered security offer when selling the TNT token. The settlement followed the SEC’s order to initiate injunctive relief proceedings against the company. The securities regulator details:
Tierion has agreed to return funds to harmed investors, pay a fine of US $ 250,000 and disable trading of its “tokens”. Tierion raised around USD 25 million through the sale of Tierion Network Tokens (TNT) in July 2017.
The SEC clarified that, under the settlement agreement, Tierion will receive compensation “to the current holders of TNT who bought TNT in the token sale or the secondary market or who received TNT as a reward from Tierion, and those who bought TNT in the token grant is offer and later sold at a loss. “The company agreed to the SEC’s order without approving or denying the regulator’s findings.
In addition, the SEC said Tierion had advised investors that they would “use the proceeds of the sale to fund further development of the” Tierion Network, “through which Tierion would provide a” blockchain receipt “service and other services yet to be developed The regulator finds that “TNT is securities” and Tierion has not registered its token sale in violation of securities registration requirements.
According to SEC news, the price of TNT fell from about $ 0.0064 on Dec. 23 to $ 0.0022 on Dec. 26.
Along with the settlement, Tierion has been granted a waiver by the SEC that will allow it to complete the retirement of the TNT token, CEO Wayne Vaughan stated on Wednesday. He added that the TNT token will not be registered as security.
A day earlier, the SEC had accused Ripple Labs, its CEO Brad Garlinghouse and co-founder Christian Larsen of having carried out an unregistered securities offer of $ 1.3 billion for the XRP cryptocurrency.
What do you think of the SEC’s action against Tierion? Let us know in the comments below.
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