Enigma Settles with SEC, Agrees to Refund ENG Investors

SEC Enigma Settlement

SEC initiated administrative proceedings against Enigma after learning that the firm had pooled in $45 Million by selling 75 Million ETN tokens to investors during the ICO event.

Nonetheless, the launch of the Enigma Mainnet ensures that the venture will survive, since once a decentralized blockchain network is propelled it can't be brought down as long as nodes/validators keep making sure about the security of the network. The startup did not register its ENG tokens as securities, nor did the ICO qualify for an exemption, said an official press release.

Following today's settlement, Enigma has agreed not only to pay a $500,000 penalty but also to refund investors via a claims process, register its tokens as securities, and even file periodic reports with the U.S SEC going forward.

In general, this appears as though one of the ore positive instances of a SEC enforcement action against an ICO, since in this case the venture had the option to get to the objective of going live as opposed to being killed before the launch.

"All investors are entitled to receive certain information from issuers in connection with a securities offering, whether it involves more traditional assets or novel ones", said John T. Dugan, Associate Director for Enforcement in the SEC's Boston Regional Office.

The San Francisco and Israel based startup, Enigma reportedly consented to the order without admitting or denying the findings.

We are thrilled to have the opportunity to put this process in the rearview mirror and turn back to our development work with our full attention and energy.
According to the update, the start-up successfully launched its first Enigma mainnet that is operated by 20 independent validators. The validators are part of the Enigma community.

Enigma takes pride in being a revolutionary blockchain-based project protocol that brings real utility to decentralization.

Enigma is down 18% on the news.

Enigma revealed that the launch of the mainnet has enabled validator-approved changes to be made to its governance, delegation, inflation and slashing.



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