SEC Places $200,000 Fine on ICO Site Coinschedule
The defunct ICO rating site allegedly took money in exchange for listings.
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The U.S. Securities and Exchange Commission has placed a fine on the ICO rating site Coinschedule, according to a news release.
Coinschedule Took Money for Listings
Between 2016 and 2019, Coinschedule was an active website. It listed and rated new cryptocurrencies or Initial Coin Offerings (ICOs).
The SEC suggests that Coinschedule misrepresented its relationship with the issuers of those ICOs. Though Coinschedule’s ICO listings and trust scores were seemingly determined by its own proprietary algorithm, ICO issuers allegedly paid for those listings.
According to the SEC, Coinschedule did not disclose that it received payment for listings, meaning that it violated anti-touting laws.
Blotics, the company that operated Coinschedule, will pay slightly less than $200,000 in fines including $154,434 in penalties and $43,000 in disgorgement. It has agreed to cease and desist from future violations and does not need to admit or deny findings.
Other Fines Against Promoters
Generally, the SEC takes action against companies that sell ICO tokens, cryptocurrencies, and other unregistered securities.
However, various other individuals have faced penalties for misconduct around ICO promotion without actually selling tokens.
Last October, John McAfee faced similar charges for failing to disclose that he was promoting ICOs for compensation. Celebrities inlcuding Floyd Mayweather and Steven Seagal have faced related penalties for their crypto promotion activities as well.
Disclaimer: At the time of writing this author held less than $75 of Bitcoin, Ethereum, and altcoins.