Here is the SEC Order that Halted Munchee ICO

ICO News US SEC Places Ball in Investors Court

The Cryptocurrency market will track how regulators respond to ICO's, SEC Chairman Jay Clayton said that resemble new company initial public offerings that should have all details transparent.

"A number of concerns have been raised regarding the cryptocurrency and ICO markets, including that, as they are now operating, there is substantially less investor protection than in our traditional securities markets, with correspondingly greater opportunities for fraud and manipulation", says Jay Clayton in a statement published on Monday.

His statements were not entirely negative.

"The technology on which cryptocurrencies and initial coin offerings are based may prove to be disruptive, transformative and efficiency enhancing", he said.

"By and large, the structures of initial coin offerings that I have seen promoted involve the offer and sale of securities and directly implicate the securities registration requirements and other investor-protection provisions of our federal securities laws", he said.

Although Clayton doesn't outright condemn ICOs, he raises concerns about the dubious nature in which some projects manage their funding, all the while recognizing that he believes that ICOs "can be effective ways for entrepreneurs and others to raise funding, including for innovative projects".

He also advises investors to read the SEC's many alerts, bulletins and statements on ICOs and cryptocurrency-related investments.

Clayton noted that this lack of regulation, in addition to cryptocurrencies' ease of transfer between countries where the SEC lacks jurisdiction, means the agency "may not be able to effectively pursue bad actors or recover funds".

Munchee, based in San Francisco, was trying to raise $15 million to improve its app, but the SEC said that would have been similar to issuing securities without properly registering with regulators.

Munchee Inc. launched its ICO in October, promising to build a new platform "that looks to disrupt sites like Yelp and Google Places by introducing an immutable blockchain ledger for food reviews".

The SEC issued a paper in July, in which it warned that certain tokens issued in ICOs could be classified as securities depending on certain conditions, including a "reasonable expectation of profits to be derived from the entrepreneurial or managerial efforts of others".

Unlike the PlexCoin incident - in which the organizers went on a Bonny-and-Clyde-style escapade to evade authorities - Munchee's investors got a refund of all the MUN tokens they bought and the organizers cooperated with the SEC's investigation, helping them avoid a penalty. Tokens and offerings that incorporate features and marketing efforts that emphasize the potential for profits based on the entrepreneurial or managerial efforts of others continue to contain the hallmarks of a security under USA law. Munchee Inc. returned proceeds to investors and halted the delivery of tokens.

Related News:

  • United Nations  call to help refugees in Libya

    United Nations call to help refugees in Libya

    The European support for Libyan authorities is part of a plan to cut African immigration across the Mediterranean. Most were Nigerians, Frontex said.
    Women Accuse Democratic Assemblyman Of Sexual Harassment And Assault

    Women Accuse Democratic Assemblyman Of Sexual Harassment And Assault

    In a written statement, Dababneh denied the incident and said Lopez apparently is coming forward "for her own self-promotion". Lopez has not recorded criminal allegations, but rather has documented an answer to the Assembly Rules Committee.
    Bullied 10-year-old girl hangs herself

    Bullied 10-year-old girl hangs herself

    Ashawnty's parents added to KDVR that she endured more bullying after the video surfaced - and that was more than she could bear. The New York Daily News reports that Ashawnty Davis died on Wednesday after she was hospitalized on life support for two weeks.
  • Starbucks Now Serving Christmas Tree Frappuccinos

    Starbucks Now Serving Christmas Tree Frappuccinos

    Said another: 'We tried the new Christmas Tree Frappuccino at work earlier and it looks atrocious but it doesn't taste half bad'. While caffeine is essential for many during this time of year, the drink ironically contains no coffee.
    Mueller subpoenas bank records in Russian Federation  probe

    Mueller subpoenas bank records in Russian Federation probe

    The bank also gave his Trump Int'l Hotel and Tower, Chicago, a loan of up to $640 million, according to a 2012 property filing. The bank rejected demands in June by US House Democrats to provide details of Mr Trump's finances, citing privacy laws.
    Moore Up In The Polls 9 Days Ahead Of Alabama Election

    Moore Up In The Polls 9 Days Ahead Of Alabama Election

    Senate majority leader says he has looked at "all the options" to prevent Judge Roy Moore from being seated in the U.S. However, the poll also highlighted a continued division among Alabama voters on the validity of the allegations.
  • Real Madrid planning swap deal for Mohamed Salah

    Real Madrid planning swap deal for Mohamed Salah

    Other contenders were his team-mate Sadio Mane, Borussia Dortmund striker Pierre-Emerick Aubameyang and Red Bull Leipzig's Naby Keita.
    November Jobs Report: Everything You Need to Know

    November Jobs Report: Everything You Need to Know

    Average hourly USA earnings rose five cents or 0.2% in November after dipping 0.1% the previous month. The U.S. economy added 228,000 jobs in November, the Labor Department said on Friday.
    Arrest made in Mariah Woods disappearance; missing girl believed to be deceased

    Arrest made in Mariah Woods disappearance; missing girl believed to be deceased

    Kimrey removed the girl's body from the place where she died and knew her death was not natural, according to arrest warrants. Authorities arrested a North Carolina man in connection to the disappearance of his girlfriend's 3-year-old daughter .
  • Watch Josh Gordon score his first touchdown in four years

    Watch Josh Gordon score his first touchdown in four years

    Thanks to Gordon's touchdown and a seven-yard touchdown from Kizer to Duke Johnson, the Browns hold a 14-7 halftime lead. In overtime, Kizer was chased and hit in the arm by Clay Matthews Jr.as he threw the ball up for grabs.
    North Korea, UN Agree to Communicate Regularly

    North Korea, UN Agree to Communicate Regularly

    North Korea is also concerned about the effects worldwide sanctions have had on the delivery of humanitarian aid. Feltman's visit came right after the US and South Korea launched their biggest-ever, annual joint air exercises.
    Rickie Fowler rallies to win Hero World Challenge from 7 shots behind

    Rickie Fowler rallies to win Hero World Challenge from 7 shots behind

    Woods finally picked up a shot at the 14th, doffing his hat to the crowd in relief, before carding another birdie at the par-three 17th.


Most liked

US Soldier Who Defected to North Korea in 1965 Dies
A month later, five including Soga were allowed to return to Japan. "In North Korea, I lived a dog's life". He said later he was scared of being sent to Vietnam and thought North Korea would send him home.

The OnePlus 5T can't stream HD video from Netflix, Amazon Prime, others
Unfortunately, there are no words on HD streaming capabilities heading for older OnePlus devices or the Axon 7 and M anytime soon. However, the exact reason for omitting this crucial feature in a phone that gets so much attention wasn't told.

Trump to undergo physical and release details early next year

NASA Shares A Shocking Image Of The California Wildfires From Space
The European Space Agency also photographed the Thomas fire, 143,000-acre blaze , which quickly spread through Ventura County. The California wildfires have burned through so much acreage in the Golden State that the smoke is visible from space.

Whistleblower: Flynn texts broached nuclear plan, sanctions
Copson was working with Flynn to promote a joint project with Russian Federation to build nuclear reactors in the Middle East. Mr Cummings said the whistle-blower detailed a business effort that was aimed at boosting investment in the Middle East.

Ronda Rousey Is Reportedly About To Finalise A Deal With The WWE
My take? Put her in the ring with Asuka in a worked-shoot fight and let 'em kick the piss out of each other. That left some to suspect that she could participate in Wrestlemania 34 set for New Orleans on April 8.

Facebook Launches Messaging App for Kids
Facebook also confirms that it's taking great measures to make sure that the app doesn't come off in any way exploitative. Then the device can be handed over to the child so they can start chatting with the family and friends you approve.

Trump officially endorses Roy Moore, called to offer support
I'll get this out the way: If you're in Alabama and you want to vote for Roy Moore , vote for Roy Moore . If Jones defeats Moore next week, Republicans' Senate majority would narrow to just 51-49.

Young man meets 81-year-old he befriended on 'Words with Friends'
Yet the two became unlikely friends as they continued to play Words with Friends matches against one another. But thanks to Amy Butler , a pastor at The Riverside Church in upper Manhattan, their flame was resurrected.

North Korea won't disarm, says Russian delegation to Pyongyang: RIA
North Korea's Hwasong intercontinental ballistic missile is lauched at an undisclosed location. He said this is probably much lighter than any real nuclear payload the North can produce.

Record-setting Atlantic Hurricane Season Ends
Even though November 30 marks the end of hurricane season that doesn't mean that there will be no more storms until next season. Slightly below-median ACE of 85 was predicted on April 6, increasing to 100 on June 1 and 135 on July 5 and August 4 .

Inc. Cuts Stake in CVS Health Corp (CVS)
Prudential Fincl Incorporated owns 2.95 million shares. (DNR) worth $54.37 million at the end of the most recent reporting period. Baird maintained the stock with "Hold" rating in Monday, September 25 report. (CVS) stake by 5.58% reported in 2017Q2 SEC filing.

Netflix has officially renewed 'Stranger Things' for a third season
The good news is that a Season 3 is coming, but, of course, we're going to have to wait a little while for it. Netflix confirmed on Friday 1 December that there would indeed be a new season for fans of the drama.

Netflix gives two-season order to Sabrina adaptation
News of a Sabrina reboot first surfaced back in September, and the details were spellbinding, to say the least. Filming on the first batch of episodes is slated to begin in February.

Kelly Clarkson Grooves With James Corden During 'Carpool Karaoke'
As Clarkson laughed at her adorably awkward husband, Corden dryly quipped, "Tell us more about the report from the farm, Brandon". Blackstock then joined, the "sparkling apple juice or something" was poured, and the date was underway.