Block.one, a blockchain-focused company & developer of the EOSIO network, has reached a settlement to resolve the class action lawsuit initiated by the Crypto Assets Opportunity Fund. According to an announcement, the company will pay a fine of $27.5 million over its ICO dated between June 2017 and June 2018.
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Despite the fine, Block.one believes that the lawsuit was "without merit and filled with numerous inaccuracies."
"However, accepting this settlement allows us to focus more time and energy on running our business and delivering new products," the company assures.
This is not the first time Block.one has to pay big fines over its initial coin offering. In 2019, the company behind the EOSIO ecosystem, agreed to pay a $24 million fine to the US Securities and Exchange Commission (SEC) in connection with the company’s sale of an ERC-20 token between June 26, 2017 and June 1, 2018
According to the SEC, Block.one failed to register its ICO as a securities offering pursuant to the federal securities laws, nor did it qualify for or seek an exemption from the registration requirements.
Update. This article has been updated with correct information of the fine and Block.one's ICO.
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