The US Securities and Exchange Commission (SEC) has accused blockchain security firm Quantstamp of conducting an illegal initial coin offering (ICO) in 2017.   
The California-based company, known for providing automated smart contract auditing services, allegedly sold unregistered securities in the form of QSP tokens.   
In response to the SEC's allegations, Quantstamp agreed to settle the charges, making amends with investors and taking necessary steps to rectify the situation.   
According to the <a href="https://optimisus.com/market/market-news/ripple-ceo-brad-garlinghouse-slams-sec-for-regulation-by-enforcement/" rel="noopener noreferrer nofollow">SEC</a>, Quantstamp raised over $28 million from nearly 5,000 investors during its ICO, which occurred between October and November 2017.   
The regulatory body asserted that the company failed to comply with federal securities laws by not registering its ICO.   
Additionally, the SEC determined that the QSP tokens met the criteria for securities under the Howey test, further compounding the allegations.   
Despite not admitting or denying the SEC's findings, Quantstamp chose to settle the charges amicably. As part of the settlement, the blockchain security firm agreed to take significant remedial measures.   
The company will pay an indemnity of $1,979,201, along with a pre-assessment interest of $494,314 and a $1 million civil penalty.   
Moreover, to address the issue of unregistered securities, Quantstamp will return the remaining QSP tokens to claiming investors and register the QSP as a security under the Securities Exchange Act of 1934.   
The settlement marks a crucial step for Quantstamp in addressing the SEC's allegations and finding a resolution with affected investors.  
The post <a rel="noopener noreferrer nofollow" href="https://optimisus.com/news/crypto-news/sec-files-accuses-quantstamp-for-conducting-illegal-ico-in-2017/">SEC Files Accuses Quantstamp For Conducting Illegal ICO in 2017</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://optimisus.com">Optimisus</a>.

SEC Files Accuses Quantstamp For Conducting Illegal ICO in 2017

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