Coinschedule.com settles a lawsuit filed by the SEC
Blotics Ltd., a UK-based company, which owns coinschedule.com, a once popular website for the upcoming ICOs has been charged by the SEC with violation of the U.S. securities law. During 2016-2019, the website presented a large number of token offerings, which coinschedule.com claimed to be credible and safe for investment based on the “trust score” developed by coinschedule.com. At least some of the advertised tokens were found to be securities.
What was also discovered by the SEC is that coinschedule.com had been accepting payments from the companies for promotion of their ICOs on the website. The U.S. securities law requires those who promote a virtual token or coin that is a security to disclose the nature, scope, and amount of compensation received in exchange for the promotion, which coinschedule.com failed to do.
As a result, the company settled with the SEC and agreed to cease and desist from committing or causing any future violations of the anti-touting provisions of the U.S. securities laws, and to pay $43,000 in disgorgement, plus prejudgment interest, and a penalty of $154,434.