SEC Hits Two Cryptocurrency Firms With Formal Charges

Crypto News | Latest News

The Securities and Exchange Commission (SEC) has slapped a crypto asset hedge fund and an ‘ICO Superstore’ with penalties.

A digital asset hedge fund manager was charged with misrepresentations and registration failures, marking the SEC’s first-ever enforcement action finding an investment company registration violation by a hedge fund manager based on its investments in digital assets.

Crypto Asset Management LP or CAM allegedly marketed itself falsely as the “first regulated crypto asset fund in the United States” while actually operating as an unregistered investment company. California-based Timothy Enneking raised $3.6 million in 4 months during an unregistered public offering which Enneking falsely claimed at the time was SEC regulated.

FREE CRYPTO COIN JUNKY HANDBOOK - 147 page guide covering Crypto Fundamentals, Beginners/Advanced Crypto Trading Strategies, Crypto Mining Techniques, ICO Investment strategies, and so much more.

CRYPTO TRADING STRATEGY GUIDES - Whether You're Day Trading, Swing Trading, Or Just Investing...Our Extensive Guides Will Get You To Where You Want To Be.

By doing this and then investing over 40% of the fund’s assets in cryptocurrencies, Enneking broke multiple SEC regulations and was served with a cease and desist letter. The company halted operations and offered buybacks to investors. CAM and Enneking agreed to pay a $200,000 fine.

The second company to be hit by the SEC was an “ICO Superstore” called Token Lot. In another milestone case, this is the first case charging unregistered broker-dealers for selling digital tokens after the DAO Report was published in 2017 advising dealers and investors that digital securities must be federally compliant.

Ran by Lenny Kugel and Eli L. Lewitt, Token Lot was marketed as a way of buying ICO tokens and partake in trading afterward. The company processed orders from 6,100 different investors and dealt in over 200 different digital assets, some of which have now been determined to be securities by the SEC.

THE COMPLETE IDIOTS GUIDE TO MARGIN TRADING ON BITMEX - Beginner Strategies for Generating Consistent Profits with Margin Trading on Bitmex

TOP 3 BITCOIN CASINO & SPORTSBETTING SITES OF 2018 - Looking to Have a Little Fun with Your Crypto? Check Out the Latest & Most Innovative Crypto Gaming & Sportsbetting Sites on the Web

Lewitt and Kugel were not registered as securities brokers despite dealing in security tokens and trading company profits for the same. Token Lot was operational from February to July 2017 until an SEC investigation led the founders to voluntarily halt operations and offer refunds on unfilled orders. 

Actions which the SEC says led to lighter penalties, which nevertheless included a $471,000 disgorgement fine with $7,929 in interest as for the company as well as personal fines of $45,000 each for Kugel and Lewitt. The founders, who neither admitted to nor denied the charges leveled against them, will also need to pay to retain the services of a third party to destroy any remaining Token Lot inventory.

Securities Charges Are Coming

The charges are likely a sobering outcome for the many unregistered or noncompliant companies and individuals throughout the US who have been dealing in what the SEC is now classing securities tokens, and given that dozens of crypto startups are being investigated by the SEC and hundreds of crypto firms are the focus of the international Operation Cryptosweep, these two cases seem likely to be the first of many more to come.

Leave a Comment

Latest Crypto News

Coinbase Now Has Its Own Political Action Committee

Coinbase Firmly Denies Accusation of Proprietary Trading

Cryptocurrency exchange operator Coinbase has denied that it engages in proprietary trading and that these activities account for a large percentage of the firm’s overall trading volume. Yesterday an investigation into cryptocurrency exchange policies and

Pot Stocks Go Parabolic as Crypto Markets Cool

Pot Stocks Go Parabolic as Crypto Markets Cool

The cryptocurrency markets are nine months into a bear market, but the animal spirits that drove the bitcoin price to nearly $20,000 haven’t disappeared. Rather, it seems that they have found a new outlet —

Most Complex dApp on Ethereum Already Has Millions of Dollars at Stake

Ethereum Wallets are Enabling Transaction Scheduling, Killer Feature

MyCrypto, a non-custodial Ethereum and ERC20 token wallet created by the co-founder of MyEtherWallet, has integrated a feature that enables Ethereum users to schedule ETH transactions ahead of time. On MyCrypto, an open-source wallet that is structurally similar

How Ethereum Hackathons are Drastically Improving Blockchain Systems

How Ethereum Hackathons are Drastically Improving Blockchain Systems

Since mid-2017, Ethereum hackathons have been held in many major cities across the globe, to encourage the development of decentralized applications (dApps) and blockchain-based systems. ETHGlobal, the biggest Ethereum hackathon organization to date, has played a key

Nasdaq is Acquiring Crypto-Friendly Swedish Exchange Cinnober

Nasdaq is Acquiring Crypto-Friendly Swedish Exchange Cinnober

Nasdaq, the world’s second-largest stock exchange, announced Friday that it is in the works to acquire Cinnober, a trading solution provider based in Sweden. Cinnober has a history for bullishness towards digital assets and making it easier

Sign Up Below!
Airdroppin the Latest Crypto News, Trading Strategies, Tools, & Reviews



1
Bitcoin
Bitcoin
$6,762.84
1.17%
2
Ethereum
Ethereum
$246.48
3.98%
3
XRP
XRP
$0.5878
3.32%
4
Bitcoin Cash
Bitcoin Cash
$504.58
6.01%
7
Litecoin
Litecoin
$63.059
7.40%
9
Cardano
Cardano
$0.092435
12.66%
6
Stellar
Stellar
$0.2874
21.42%
14
NEO
NEO
$19.671
5.29%
5
EOS
EOS
$6.082
2.57%
12
IOTA
IOTA
$0.6272
6.59%

Crypto Guides & Tutorials

 Crypto Reviews

Subscribe to Our Social Media Daily Crypto Memes
Follow, Like, and Share Our Memes With The World


Pin It on Pinterest

Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
Plus Free Crypto Trading Guides, Tutorials, Latest Crypto News,
and Altcoin Reviews. (Coming Soon: Pro Trading Signals)
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
Plus Free Crypto Trading Guides, Tutorials,
Latest Crypto News, and Altcoin Reviews
(Coming Soon: Pro Trading Signals)
DOWNLOAD NOW
We hate spam as much as you do. Unsubscribe anytime.
SIGNUP FOR YOUR FREE
CRYPTO COIN JUNKY
HANDBOOK