Altcoin News: SEC Fines Sia Network for Unregistered Sale of Securities
October 2, 2019, by Marko Vidrih on ALTCOIN MAGAZINE
Sia Decentralized Cloud Storage Developer Nebulous Inc. settled the proceedings with the US Securities and Exchange Commission (SEC).
According to the SEC, in 2014–2015. Nebulous offered and sold securities requiring registration. Thus, the company violated the provisions of the Law on Securities.
The securities mentioned by SEC were called “Siastock” and provided their holders with the right to receive a percentage of future profits from transactions on the Sia network and the Nebulous user application that was under development at that time, as well as “SiaNotes”, which represented a “promise of future payments “.
As part of the claims settlement, Nebulous agreed to pay a fine and transfer illegally acquired property for a total of $225,000.
“As reflected in the settled order, the SEC did not take any enforcement action with respect to the Siacoin token or any current activity on the Sia network, and the order does not require Nebulous to register the Siacoin token as a security with the SEC,” the company writes.
“Given that Nebulous had properly registered its 2018 offering of Siafunds in the wake of the SEC’s 2017 guidance regarding digital assets, we were disappointed that the SEC chose to take action with respect to the relatively small offering conducted years before we had the benefit of that guidance. However, beyond that, we are pleased at how the company and the network fared under such intense regulatory scrutiny and that after a thorough investigation, the SEC asserted no claims regarding Siacoins or the current operations on the Sia network,” commented Zach Herbert, Nebulous Chief Operating Officer.
Earlier it became known that the SEC fined EOS developer Block.one for $24 million due to an unregistered ICO, during which it managed to raise over $4 billion.
Author: Marko Vidrih
