THELOGICALINDIAN - Increasingly common activity taken by the SEC adjoin antecedent bread offerings is accepted to advance to added cryptocurrency projects actuality afflicted to acquittance investors Among those accepted to be afflicted is the aboriginal USbased cryptocurrency advance close Pantera Capital with the aggregation animating to accept refunds on a division of its ICO investments
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Pantera Capital Anticipates a Quarter of ICOs in Portfolio May Be Targeted for Securities Violations
In a letter accounting by Dan Morehead and Joey Krug, Pantera’s co-chief advance admiral announced the company’s apprehension that one in four of its ICO investments will be accounted to comprise actionable securities. If that proves to be the case, the projects may be accountable to affair refunds to investors. The apropos accept been sparked by the SEC’s Nov. 16 advertisement that bread offerings Paragon Bread and Carriereq had issued tokens to non-accredited investors in abuse of balance laws.
The letter states: “While we accept the all-inclusive majority of the projects in our portfolio should not be affected, about 25 percent of our fund’s basic is invested in projects with aqueous tokens that awash to U.S. investors after application adjustment D or adjustment S,” abacus “If any of these projects are accounted to be securities, the SEC’s position could abnormally affect them.”
Further elaborating apropos the projects of concern, the letter estimates that “about a third (approximately 10 percent of the portfolio) are alive and functional,” acquainted that “while they could technically abide after added development, catastrophe development would arrest their progress.”
Pantera-Backed Paragon Coin Targeted by SEC
Paragon Coin, an ICO that accustomed abetment from Pantera, was fined $250,000 by the SEC on Nov. 16 for accepting bootless to annals its badge auction with the agency. The aggregation is additionally appropriate to atone investors who awash the tokens at a loss, in accession to those who are still captivation Paragon Coin.
The SEC again described the activity as absolute “the commission’s aboriginal cases arty civilian penalties alone for ICO balance alms allotment violations,” abacus that “Both companies accept agreed to acknowledgment funds to afflicted investors, annals the tokens as securities, book alternate letters with the commission, and pay penalties.”
Do you anticipate we will see boundless refunds actuality issued by ICOs as authoritative burden mounts? Share your thoughts in the comments area below!
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