Cryptocurrency Firms Penalized Nearly $200 Million By US Regulators Since ICO Bubble Burst
Posted on November 14th, 2020 by Kyle Torpey and filed under Regulation.
A new, paywalled report from The Block indicates the U.S. SEC and CFTC have hit crypto companies with nearly $200 million in penalties since the bursting of the initial coin offering (ICO) bubble in early 2018.
The Block was able to calculate a specific amount of $198 million in penalties by analyzing various press releases from the SEC and CFTC over the years. While the data goes as far back as 2014, nearly all of the monetary sanctions took place starting in 2018, right after the bursting of the ICO bubble.
It’s clear that the 2017 ICO bubble was a wake-up call for regulators in terms of looking at the large sums of money entities had been raising in various crypto token sales. Additionally, these sanctions illustrate the fact that issuing a token on a blockchain does not mean that various financial regulations around the solicitation of money from the public will magically disappear.
The data from The Block indicates this sort of enforcement action from the SEC and CFTC peaked in 2019. Although, there is still more time for more of this sort of action from U.S. regulators to take place in 2020.
In their report, The Block note that the numbers may not be exhaustive, as they are only based on press releases made by the regulatory agencies.
Kyle is the creator of The Crypto Feed. Before founding The Crypto Feed, Kyle was a longtime freelance Bitcoin writer at places like Forbes and Bitcoin Magazine.