The Securities and Exchange Commission is sinking the company behind another coin offering (ICO).
For an injunction on December 21st The SEC noted that ShipChain’s ICO and its SHIP tokens were another example of a disguised unregistered security offering.
ShipChain raised $ 27.6 million from late 2017 through early 2018, at the time of the greatest craze for ICOs. By registering in Delaware at the end of November 2017, The company promised to improve the transparency of transportation and shipping with its yet-to-be-developed blockchain platform. Unfortunately for the company, linked access to this platform with the purchase of SHIP tokens and even paid the ICO promoters with these tokens, committing several of the major sins of securities law at the same time.
ShipChain announced the launch of its mainnet in late July this year, but the company appears to have packed its bags sometime in October. In the second half of the year there were indeed some price and market capitalization spikes at SHIP.Now, however, the company must transfer all of the SEC-appointed employees.
In addition to returning all SHIP tokens The SEC fined ShipChain $ 2,050,000, which the SEC calculated based on the fact that ShipChain has decided to suspend all operations and that the penalty represents essentially ShipChain’s entire net worth.
ShipChain based in South Carolina, received a similar injunction from the state securities regulator in May 2018. However, the company managed to get out of this situation.