The US Securities and Exchange Commission (SEC) announced that it has filed a series of charges against the “Blockchain of Things” company, which is abbreviated with the letters “BCOT”, for conducting an Initial Coin Offering (ICO) without registering with the authority.

The SEC demanded that BCOT cease and desist from committing or causing any violations of the registration provisions of the federal securities laws, and the company was fined $250,000.

BCOT was also asked to return funds to investors who purchased the tokens when they were offered in the form of an ICO.

Another request states that BCOT is obligated to register its tokens as securities.

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So far, BCOT has not stated its position on all that was requested of it, and it has not responded by accepting or rejecting the demands.

For information, “BCOT” began offering its currency “ICO” in December 2017.

Between December 2017 and April 2018, BCOT raised more than $600,000 by selling BCOT tokens to 69 individuals during the “pre-sale.”

These 69 individuals were all from the USA.

Between January and May 2018, BCOT raised over $12 million in BCOT token sales, selling tokens to more than 1,380 people.

The SEC report, published in July 2017, was an explicit warning that ICO issuers may be violating existing securities law.

BCOT raised nearly $13 million in an ICO, which clearly ignored the SEC’s warning.

In March 2019, BCOT distributed its tokens.

BCOT says its platform was intended to allow third-party developers and third parties to build applications for transmitting and recording messages, generating digital assets, and transmitting them.

The SEC found that BCOT sold its tokens to US investors and allowed four sellers to engage in the exclusive resale of BCOT digital tokens in some foreign countries without restrictions on reselling those tokens to US investors.

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Caroline M. said: Wilchans, associate director of the Securities and Exchange Enforcement Division at the SEC, says:

BCOT has not provided ICO investors with the information to which they are entitled in connection with the offer of securities.

We will continue to consider appropriate remedies, such as those in today’s arrangement, to provide investors with compensation and required information and to provide companies that have conducted unregistered offerings an opportunity to proceed in accordance with federal securities laws.

The SEC pursued several fraudulent international IPOs as well as issuers that raised funds after ignoring securities laws.

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