The U.S. Securities and Exchange Commission (SEC) has reached an agreement with the blockchain project Tierion to reimburse ICO participants and buy back rewards paid to network miners.
Tierion investors may seek compensation for losses and interest payments within 60 days of the court ruling.
Tierion must immediately halt trading of ERC-20 tokens on the Ethereum blockchain and pay a $250,000 penalty to the SEC.
The agreement with the regulator contemplates the redemption of 350 million TNT for 4,800 investors and the effective liquidation of 1 billion tokens.
The TNT token sale began in July 2017 and was completed in a day. The campaign raised $25 million for the project.
The regulator acknowledged that the token sale was conducted in violation of U.S. securities laws. Company representatives did not admit it, but did not deny the wrongdoing.
Despite the SEC’s allegations, the project plans to continue operating without TNT.
“This announcement does not affect the availability of Tierion’s current products,” — говорится in a project statement.
Developers can continue to use Chainpoint in their applications. The team now plans to move to the next phase of network deployment.
Network node operators can sell their TNT to the project at a price of $0.0001 and claim interest payments, пишет CoinDesk.
Earlier on December 23, the SEC filed a lawsuit against Ripple. It led to the removal of XRP from the Bitwise 10 Crypto Index Fund and the suspension of trading of the token on Jump Trading and Galaxy Digital.
Ripple CEO Brad Garlinghouse назвал the actions of the U.S. regulator “a horrific precedent” and pledged to defend the company in court.
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