SEC Clamps Down on CryptoFed DAO Over Misleading Tokens
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The US Securities and Exchange Commission (SEC) halted registration for two tokens called "Ducat" and "Locke" by Wyoming-based company called American Cryptofed DAO. The watchdog said in a statement that American Cryptofed DAO's regulatory filing contained "materially misleading statements and omissions."

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"...American CryptoFed filed a document that purported to be an amended Form 10, consisting of a cover page and several paragraphs asserting that the Ducat and Locke tokens were not securities. The amendment did not address any of the identified material deficiencies," the SEC said.

The SEC said that American Cryptofed DAO failed to write down the required information about the company's business, management and financial condition. The company also gave inconsistent claims about whether the tokens are securities or not.

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American Cryptofed DAO became the first US-based legalized decentralized organization in July this year. Wyoming also became the first state in the nation to pass legislation into law recognizing DAO's as a distinct form of limited liability companies.

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