SEC Slaps TokenLot ICO Superstore and Crypto Asset Management with Penalties


SEC Gives Penalties to Crypto Firms Promoting Falsified Hope During ICOs

As per a published report, the U.S Securities and Exchange Commission (SEC) has been acting against crypto firms that have either promoted falsified hope or have been operating their businesses without the necessary licenses.

The first to have recently made SEC’s watchlist is Crypto Asset Management LP (CAM) and its Managing Director, Timothy Enneking. According to the claims reported by Coin Desk, Enneking conducted an Initial Coin Offering (ICO) by calling the firm “the first regulated crypto asset fund in the United States,” and managed to raise nearly $3 million in doing so.

CAM was given a penalty of $200,000 to pay upfront to the SEC. The former neither accepted nor denied the claims made but agreed to the cease-and-desist. Another firm that the SEC caught was that of TokenLot LLC as well as its founders, Lenny Kugel and Eli L. Lewitt.

Like CAM, TokenLot LLC’s founders were conducting businesses illegally. In particular, its owners were frowned down upon because they took on the roles of broker-dealers without any registrations. For this reason, TokenLot LLC and the duo were also charged with a penalty, but unlike the previous firm, a larger one: $471,000, $7,929 in interest and $45,000 for each proclaimed broker.

Coin Desk also noted that Lewitt and Kugel have:

“agreed to industry and penny stock bars and an investment company prohibition with the right to reapply after three years.”

Co-Director of SEC’s Enforcement Department, Steven Peikin shared his thoughts on the actions taken by the commission. In particular, he was quoted saying that:

“the penalties […] reflect the prompt cooperation and remedial actions by TokenLot, Kugel and Lewitt.”

US Federal Judge in New York Claims ICOs Are Covered By Securities Laws

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