Back in December 2017, New York-based BCOT conducted an ICO and pulled in almost $13 million, funds that were earmarked for expanding its business, as well as building a blockchain technology platform. The release further states that BCOT intended for its platform to assist developers in creating blockchain applications that will allow message transmission, digital asset generation, and digital asset transfer. However, the ICO was not properly done as BCOT did not register the offering and also did not qualify for a registration exemption.
The SEC’s order requires BCOT to “cease and desist” from any further violations, and pay a fine of $250,000. Then BCOT must return all funds to the ICO participants and then register the tokens properly.
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