The US Securities and Exchange Commission (SEC) has imposed on security token trading platform tZERO a fine of $800,000 for violating federal alternative trading system rules.
The SEC has said tZERO failed to properly disclose its use of trade data outside the United States. We're talking about Singapore-based Blue Ocean Financial Technology, which in 2017 was acquired by Overstock, which includes tZERO.
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tZERO has proposed to the SEC to settle the dispute without acknowledging or refuting the agency's findings. In addition to the fine, the company must not commit any further violations in the future.
Back in 2019, investors charged Overstock and its former CEO Patrick Byrne with securities fraud. In May 2020, the company appealed the lawsuit. Company representatives also called the allegations of market manipulation and dissemination of false information unfounded.