3 Crypto Companies Fail to Meet SEC-Set Refund Deadlines For $40 Million Collectively Raised at an ICO

Wall Street Journal reports three blockchain token launches, Gladius, Airfox and Paragon Coin, all failed to meet the SEC's repayment deadlines.

Following charges by the Security Exchange Commission, three Crypto startup companies Airfox, Paragon Coin Inc., and Gladius Network LLC, which collectively raised $40 million from investors during the Initial Coin Offering in 2017 have breached the agreement by not meeting the repayment deadlines. Having taken part in unlawful digital toke sales, the companies incurred fines charged by the SEC.

Both Paragon, which is a blockchain technology firm in the marijuana industry, and Airfox, a mobile banking services provider in developing countries, agreed to each pay $250,000 after settlement with the SEC in December last year. After self-reporting its desecrations, the SEC did not charge Gladius Network any penalties.

For them to be in compliance, the three companies were requested to produce their registration statements. These documents are meant to inform their investors of financial performance, trends, and potential risks and are overseen by the SEC.

However, Paragon failed to reply to a letter from the SEC inquiring about accounting and shareholders' rights. Gladius was supposed to have filed its registration statement by May 20 this year but claims that deadline was pushed to November 18. When contacted by WSJ about the matter, the company's attorney did not comment on it.

Paragon and Airfox were supposed to repay investors by October 16, but Airfox said the deadline was pushed till December 28. According to WSJ, the registration statements reveal that Paragon owes $14.9 million to investors, and the company disclosed that it only has $95,659 in current assets. The company is planning to raise funds by selling its building in Los Angeles. On the other hand, Airfox's filings show that the startup has a current asset of $6.1 million and owes investors $15.4 million.

According to Michael S. Dicke, former settlement lawyer for SEC, such settlements can be termed as being ineffective solutions. “I may look at it as impractical since such a remedy only applies when the companies are in a position to refund,” said Dicke.

This year alone, the SEC has collected over $4.3 billion in penalties, received 31 court orders to freeze assets and suspended 271 users from security trading.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Denis Miriti
Denis Miriti
Denis Miriti is an excellent writer that perfectly understands financial markets, which allows me to provide great quality of writing on the niche. I have 3 years of experience as a freelance Forex writer, creating educational articles, strategies, news re-written articles, forecasts and much more. Other skills include Bitcoin, Blockchain and Cryptocurrency writing.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,478FansLike
2,795FollowersFollow
4,200FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Market Wrap: Bitcoin Never Going to Zero, Philanthropist Giving Away Money to Buy BTC

This week, the price of bitcoin moved, although it continues to trade in a tight range and is still hovering around $9,200 on low...

Bearish Catalysts for Bitcoin Price

This week, Bitcoin is ranging between $9,050 and $9,500. Currently, we are trading just above $9,200 after yesterday, Bitcoin’s price dropped $150 in seconds...

The Good and Bad of the Crypto Going Public

This week, big news came in the form of crypto businesses that are planning to go public either later this year or next year. Crypto...

US Secret Service Has Modernized Its Role in Tackling Financial Crimes in The Crypto Era

The role of the US Secret Service, whose purpose extends from protecting the US President Trump to protecting the US financial systems, has...

Bitcoin is in a ‘Consolidation Zone,' We’ll Move to $14,000 Once BTC Gets Above $10k: Mike Novogratz

Bitcoin is about system change, said Mike Novogratz, CEO of Galaxy Digital, in his latest interview with Barron’s Carleton English. While talking about the catalysts...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today