WASHINGTON—The Securities and Alternate Fee intervened to halt a San Francisco firm’s $15 million preliminary coin providing, one other signal that regulators are continuing a crackdown on the new fundraising method.
The SEC mentioned Monday that Munchee Inc.’s digital token sale was unlawful as a result of it was marketed to the general public with out offering investor disclosures which are required underneath the legislation. The case is the primary through which the SEC has taken motion in opposition to an ICO with out making fraud claims.
Munchee Inc. sought to boost $15 million by promoting tokens that it mentioned may very well be traded and would rise in worth because the agency expanded its enterprise, claims that put the providing underneath the SEC’s jurisdiction. It provided the coin, which it referred to as MUN, in alternate for bitcoin or Ethereum, the 2 best-known cryptocurrencies, the SEC mentioned.
The corporate didn’t instantly reply to an e-mail in search of remark.
Munchee operates an iPhone app for reviewing eating places that it has described as a mix of Yelp and Instagram. It raised about $60,000 from 40 traders earlier than the SEC contacted the corporate. The agency halted the provide hours after listening to from the regulator and didn’t pay a penalty to finish the investigation, the SEC mentioned in an order asserting the settlement.