SEC Slaps Crypto Firm with $50,000 Fine for Selling Unregistered Securities

The Securities and Exchange Commission (SEC) issued a cease-and-desist order against a crypto investment fund for distributing unregistered securities. The US securities regulator also slapped CoinAlpha Advisors LLC, a Delaware-based blockchain financial products company, with a $50,000 fine.

According to the SEC order, CoinAlpha declined to register its business, which involved investing in and distribution of crypto assets, as required by federal law. The company, according to the SEC notice, had applied for a distribution license exemption, but it didn’t fit the criteria for approval. Despite that, CoinAlpha engaged itself in the activities that violated the specification of the US federal law.

“Respondent filed a Form D Notice of Exempt Offering of Securities with the Commission on November 3, 2017,” the SEC order read. “CoinAlpha did not file or cause to be filed a registration statement with the Commission, and no exemption from registration was available for the securities offering during the Relevant Period.”

Reference: https://www.ccn.com/sec-slaps-crypto-firm-with-50000-fine-for-selling-unregistered-securities/

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