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The US Securities and Exchange Commission (SEC) has taken action against another startup in the cryptocurrency space selling unregistered securities. Tierion raised $25 million through a token sale, and the company has agreed to “return funds to investors” and prohibit its token trading.
Tierion Inc., a Texas-based blockchain company, has reached a settlement with the SEC, accusing it of selling TNT tokens for unregistered security products. The settlement came after the SEC issued an order to terminate the proceedings against the company. The securities regulatory authority explained in detail:
Tierion has agreed to return funds to the victimized investors, pay a fine of $250,000, and disable the trading of its “tokens”… Tierion raised approximately by selling the “Tierion Network Token” (TNT) in July 2017 $25 million.
The SEC clarified that, according to the settlement agreement, Tierion will “distribute to current holders of TNT purchased in the token sale or the secondary market, or current holders of TNT who received rewards from Tierion, as well as those who purchase TNT in tokens.” People provided compensation. Provided, and later sold at a loss.” The company agreed to the SEC’s order, but did not acknowledge or deny the regulatory agency’s findings.
In addition, the SEC explained that Tierion told investors that it will “use the proceeds from the sale to fund the continued development of the “Tierion Network”, through which Tierion will provide the “blockchain receipt” service and other services yet to be developed. The regulator believes that “TNT is a security” and Tierion has not registered its token sales, thus violating the securities registration regulations.
Following the SEC news release, the price of TNT fell from approximately $0.0064 on December 23 to $0.0022 on December 26.
CEO Wayne Vaughan explained on Wednesday that with the settlement agreement, Tierion has received an exemption from the SEC to enable it to complete the retirement of TNT tokens. He added that TNT tokens will not be registered as securities.
A day ago, the SEC accused Ripple Labs, its CEO Brad Garlinghouse, and co-founder Christian Larsen of conducting an unregistered securities offering of XRP cryptocurrency worth $1.3 billion.
What do you think of the SEC’s actions against Tierion? Let us know in the comments section below.
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