A large number of cryptocurrency organizations have been faced with lawsuits that have been filed by the US Securities and Exchange Commission. Examples of these companies and organizations are Coinbase and Ripple. In the most recent one, Ripple came out with a partial victory. QSP stands as the latest target for SEC.
The Securities and Exchange Commission says that Quantstamp will have to pay $3.5 million. The reason for this is that Quantstamp came clean about carrying out securities sales that were unregistered. The initial coin offerings of several crypto tokens are regarded as unregistered securities sales by the Securities and Exchange Commission.
Quantstamp Raised $28 Million in 2017
According to a statement published by SEC, the cryptocurrency project was able to raise approximately 28 million dollars in 2017 as the year ended. 5000 investors were the ones responsible for the amount. This number is inclusive of US citizens and residents. Quantstamp was also planning on making the initial coin offering process decentralized. Unfortunately, it did not succeed and the centralization properties were still retained. SEC also stated that there were investors who were interested in buying QSP with hopes of large profit returns implying that there was a violation of rights.
The penalties were imposed after the two parties discussed and agreed on the way forward. Quantstamp is operating at a low value already and therefore the results of the lawsuit were not that significant.