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Block.one Reaches $24 Mln Settlement With SEC For Unregistered EOS ICO

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Blockchain software company Block.one has reached a $24 million one-time civil settlement with the U.S. Securities and Exchange Commission or SEC for running an unregistered initial coin offering or ICO for an ERC-20 compatible EOS tokens. Block.one has neither admitted nor denying the SEC's findings.

The SEC's order finds that Block.one violated the registration provisions of the federal securities laws.

The EOS.IO software developer is said to have raised $4 billion, including a portion from US investors, between June 2017 and June 2018 in the unregistered ICO. Block.one has operations in Virginia and Hong Kong.

"Companies that offer or sell securities to US investors must comply with the securities laws, irrespective of the industry they operate in or the labels they place on the investment products they offer," said Stephanie Avakian, Co-Director of the SEC's Division of Enforcement.

Block.one was accused of not registering its EOS ICO as a securities offering pursuant to the federal securities laws, nor did it qualify for or seek an exemption from the registration requirements. It offered 900 million tokens for sale.

Last week, Block.one opened its fourth global site located in the Washington, D.C. metropolitan region in Arlington, Virginia as its headquarters for its U.S. operations. This expands its presence and high skill job creation in the U.S.

Block.one has already committed to creating 170 high-skills jobs in Arlington over the next three years. It already employs more than 80 engineering and research and development workers in Blacksburg, Virginia.

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