Wireline to pay $650,000 to settle SEC dispute

Blockchain startup Wireline has agreed to pay $650,000 to the U.S. Securities and Exchange Commission (SEC). The regulator accused the project of an illegal token sale.

In 2018 the team raised $16.3 million under the SAFT (Safe Agreement for Future Tokens) model, compatible with regulatory requirements. The contract envisaged a distribution of tokens after the Wireline platform launches.

The commission said the startup had not registered the SAFT. Authorities barred the developers from transferring tokens to investors.

Commissioner Hester Peirce partially supported the regulator’s decision. She said that during the token sale the project team’s ‘substantially distorted’ important facts about the platform’s development.

33-10920 by ForkLog on Scribd

In December 2020, a court ordered the ICO startup Blockvest and its founder Reginald Buddy Ringold to pay $696,000 in an SEC action.

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