The US Securities and Exchange Commission (SEC) has accused cryptocurrency company Loci Inc. and its CEO John Wise of selling unregistered digital assets.
According to the announcement made by the regulator yesterday, the company allegedly sold these assets without the relevant registration and made false statements about their sale.
In particular, Wise and his company reportedly raised a total of $7.6 million between August 2017 and January 2018 through the sale of "LOCIcoin," a token not registered as such. As if this were not enough, the SEC also accuses Wise of using $38,000 from these sales for personal use.
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As a result of all these actions, the SEC believes Wise and Loci Inc. violated portions of the Securities Exchange Act of 1934 and the Securities Act of 1933.
Now, the company and its CEO face a $7.6 million fine.