Block.one, Creator of EOS, Settles with the SEC. Was it a Slap on the Wrist? Did EOS Get a Pass from the Feds?
Insights October 3, 2019
The SEC recently reached a $24 million settlement with Block.one for its unregistered offering of over $4 billion worth of EOS tokens. The Crowdfunder Insider news site reached out to Rimon partner Dror Futter for comment on this unusual development.
“This seems to place EOS in the same category as Ether, a token that likely was a security at birth and, but having been “born,” has now morphed into a non-security through decentralization,” said Futter. “Otherwise, the absence of a rescission requirement and the lack of any restrictions on the tokens would be difficult to understand. The amount of the fine may reflect the fact that of the billion or so raised, US purchasers may have made up a small amount of the purchased tokens – but this is speculation and not addressed by the SEC.”
In addition to a growing blockchain practice, Dror Futter focuses his practice on startup companies and their investors and has worked with a wide range of technology companies. His fifteen years’ experience as in-house counsel includes positions with Vidyo, Inc., a venture-backed videoconferencing company, and New Venture Partners, a venture fund focused on corporate spinouts. Prior to that, Mr. Futter was Counsel to the CIO of Lucent Technologies, as well as supporting parts of its sourcing organization. Read more.
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