The US SEC (Securities and Exchange Commission) has blamed a Russian ICO (Initial Coin Offering) rating service for supposedly being unsuccessful for disclosing payments made in return for marketing ICO cryptocurrency occasions. This week, the US watchdog claimed that ICO Rating has decided to pay $268,998 to negotiate a damages claim for supposedly approving payments “for publicizing issuers’ digital asset securities services.”
As per SEC, from December 2017 to July 2018, ICO Rating processed out research recommendations and reports to help potential investors in searching tokens, ICOs, and coins that were worthwhile and genuine prospects for trading. On the other hand, the firm did not mention that a number of issuers might pay for ratings and inclusion.
While ICO Rating marketed its services as “a rating organization that launches independent analytical research” for the purposes of “assisting the market attain the required standards of transparency, quality, and reliability,” it is objecting the anti-marketing provisions of the Securities Act of 1933 to be unsuccessful to mention paid-for material.
The Russian firm neither denied nor admitted the practice, but has still decided to pay damages of $106,998 and a civil fine of $162,000. Moreover, ICO Rating claimed that it will not perform such activities in the coming period.
On a related note, earlier Federal Trade Commission executives talked about imposing a record-setting penalty on Facebook followed by a year of huge data breaches and disclosure of inappropriate data sharing, as per the media. Facebook might have breached a 2012 deal with the government to defend consumers’ data and make obvious statements related to their privacy.
If applied, this might be the first huge penalty Facebook has encountered in the U.S. after it was disclosed last year that the personal info of more than 87 Million consumers had been offered to Cambridge Analytica, a political consulting company, without their explicit approval.