The U.S. Securities and Exchange Commission (SEC) оштрафовала platform for trading security tokens tZERO $800,000 for violations of federal rules governing alternative trading systems.
According to the order dated January 10, the company failed to disclose adequately information about the use of trading data outside the United States. The Singapore-based Blue Ocean Financial Technology — in 2017 it was bought by Overstock, the retail conglomerate whose group includes tZERO.
The platform proposed that the SEC settle the dispute without admitting or denying the agency’s findings. In addition to the fine, it was ordered to refrain from future violations.
This is not the regulator’s first complaint against tZERO. In March 2018 the Commission took an interest in the platform’s token sale, and two years later it broadened the investigation.
Back then Overstock received a request for documents related to the investments of GSR Capital, as well as the tZERO alternative trading system. In another proceeding the regulator sought to examine insider-trading policies, as well as certain employment and consulting agreements.
In 2019 investors accused Overstock and its former CEO Patrick Byrne of securities fraud. After Byrne’s departure from the company, a number of investors left tZERO.
In May 2020 Overstock appealed the lawsuit related to the air-drop of security tokens. Company representatives called the allegations of market manipulation and dissemination of false information unfounded.
On January 5, 2022, CFTC fined the Polymarket $1.4 million for operating off-exchange binary options trading without proper registration.
Follow ForkLog news on Twitter!