The Securities and Exchange Commission (SEC) filed a lawsuit against New York Data Encryption Assets Co., Ltd. (CCC) and its main members, accusing them of being suspected of fraud and violating the current standard security law.
Brian Amoah, a user of the company, and Oliver Young and Elbert Elliot, former salesmen, were tested to cheat investors of $1.5 million. According to the statement of the SEC, the three brought nearly 100 personal BXY tokens, many of whom had no previous experience in digital assets.
The Commission declared that the defendant "as an unregistered broker foreign exchange dealer, carried out the unregistered sale of BXY tokens." CCC was unable to apply for registration with the securities regulatory authority and did not comply with the exemption provisions, which obviously violated sections 5, 15 and 17 of the Securities Act of 1933.
"In addition, the U.S. Securities and Exchange Commission charged that the defendants made material misstatements and misleading statements in the offer acceptance, purchase and/or market sale of BXY tokens, including the deposit and delivery of BXY," the report of the U.S. Securities and Exchange Commission wrote.
Because of false statements, many investors never received his tokens, but those who received tokens had no choice but to pay higher prices.
The Securities and Exchange Commission confirmed that it had accepted Yang's settlement proposal, and Yang promised to pay for withdrawal of shares and civil litigation penalties in the mediation. The Commission indicated that this would give other defendants "limited order relief, interest abandonment before ruling and civil litigation punishment".
The BXY token was released in September 2019 to reach the highest value of nearly US $0.02, but three years later, its value plummeted to less than one thousandth of US $1, causing serious losses to investors.
Management Methods Wild West of Digital Assets
The Securities and Exchange Commission (SEC), led by Gary Gensler, has been riding a roller coaster in the process of trying to control new industries. The regulatory authorities have already launched a tough identification of securities in some digital assets, and involved in several types of laws and regulations on token issuers.
Perhaps the most famous example of the SEC is the XRP foreign investor Ripple Labs, which has been operating since December 2020. On the premise of bringing a lawsuit against the enterprises that played a role in the initial coin sale in 2017, the digital asset insider trading cases of former Coinbase (Nasdaq code: COIN) employees have been raised.
The US Securities and Exchange Commission (SEC) has increased its call to require foreign investors to register with the institution, and added its digital asset supervision unit to firmly try to control this field.
