Siacoin Settlement and SEC Alleges Securities Fraud

Siacoin Settlement and SEC Alleges Securities Fraud

Considering that EOS raised $4.1 billion during their ICO that lasted an entire year it is easy to see Herbert’s position. Despite the egregious amount of funds raised by EOS, the SEC fined the firm only $24 million. By comparison, Sia definitely got a bit of harsher treatment. "Siacoin Settlement and SEC Alleges Securities Fraud"

Siacoin Settlement and SEC Alleges Securities Fraud

According to the SEC, Nebulous illegally offered and sold unregistered securities without qualifying for an exemption. Notably, the SEC states that Nebulous Inc, the firm behind Siacoin, did not fill out a registration statement, in fact, the firm didn’t fill out regulatory requirements according to the document.

The filing states that these activities transpired throughout 2014-2015 during two crowdfunding campaigns. Specifically, the Nebulous Siastock, which entitled token holders to future revenue generated from the Sia Network, and SiaNotes. The later represented a payment promise for future revenue.

Per the Securities and Exchange Act of 1934, an investment falls under securities regulations if an individual invests money and expects to receive profits from the efforts of others. Additionally, if your investment is into a common enterprise and meets any of the previously mentioned factors, it’s a security. Clearly, these tokens met these criteria and therefore, the SEC chose to fine the firm for its actions.

Sia Platform Shall Continue

Interestingly, the SEC took no further action against the Sia Network. Basically, Sia tokens don’t need to be registered with the SEC at this time. Consequently, Herbert viewed the overall outcome of the trial as positive. He feels the verdict, although costly, validates Sia’s multi-coin approach to the market.

Siacoin first made headlines for its blockchain-based cloud storage platform. The protocol allows users to make money by renting out their unused hard drive space. The platform utilizes advanced cryptography to enable users to utilize other participant’s computers for data storage without the risk of data manipulation.

Aside from providing users with a paycheck, the company was able to lower the costs of cloud storage significantly. The platform’s developers intended to give big cloud firms such as Amazon some real

Siacoin now has the green light to continue operations. The SEC doesn’t require the registration of Siacoins which is a vote of confidence for both the platform and investors moving forward.

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