In a recent development, the United States Securities and Exchange Commission (SEC) has settled with crypto firm Quantstamp following charges of violating securities law which the SEC leveled against it. Quantstamp agreed to settle with the SEC without admitting or denying the charges.
Part of the statement read:
Quantstamp agreed to a cease-and-desist order and to pay disgorgement of $1,979,201, prejudgment interest of $494,314, and a civil penalty of $1 million.
How Quantstamp Violated Securities Laws
Quanstamp raised over $28 million following its Initial Coin Offering (ICO) in October-November 2017 when it sold its native token QSP to close to 5,000 investors (including ones residing in the US).
The SEC alleged that these QSP tokens were a security when applied to the Howey test, and Quanstamp’s failure to register them violated federal securities laws. Quanstamp moved on to launch in 2017 as an automated smart contract…
