ICO Rating has neither admitted nor denied the SEC’s charge that it had included paid-for ICO reviews between December 2017 and July 2018.
In a significant development, the U.S. Securities and Exchange Commission (SEC) stated, it has levied “a fine and has settled charges against a Russia-based ratings firm for failure to disclose payments it received to publicize digital asset offerings of issuers it had rated”.
According to the regulator, although ICO Rating had not admitted nor denied the SEC’s charges it had however agreed to pay around $269,000 as fine for “anti-touting” violations committed between December 2017 and July 2018.
The SEC went on to add, ICO Rating has agreed to not break those rules in the future.
ICO Rating did not immediately respond to requests for comment.
According to Melissa Hodgman, a director in the SEC’s enforcement division, “The securities laws require promoters, including both people and entities, to disclose compensation they receive for touting investments so that potential investors are aware they are viewing a paid promotional item”.
“This requirement applies regardless of whether the securities being touted are issued using traditional certificates or on the blockchain.”