ICORating will pay SEC a penalty for failure to disclose payments for positive reviews on ICO

The US Securities and Exchange Commission (SEC) fined Russian analytical firm ICORating for not reporting payments for positive feedback on various ICO projects.

The analytical company ICORating is engaged in evaluating investments in ICO projects. It includes team members of well-known cryptocurrency projects, for example, NEO.

According to the SEC, projects evaluated by ICORating between December 2017 and July 2018 raised funds through initial token offerings, which the SEC classifies as securities. Therefore, the relevant disclosure should have been published for potential investors.

SEC Deputy Director of Law Enforcement, Melissa Hodgman, stated that ICORating violated section 17 (b) of the Securities Act of 1933. 

"The securities laws require promoters, including both people and entities, to disclose compensation they receive for touting investments so that potential investors are aware they are viewing a paid promotional item. This requirement applies regardless of whether the securities being touted are issued using traditional certificates or on the blockchain," 

said Hodgman.

The SEC announced it had reached an agreement with ICORating to pay a fine of $ 268,998. The analytic company agreed to pay a civil fine of $ 162,000 and $ 106,998 in interest, without commenting on the findings of the SEC.

Recall that earlier this month SimplyVital Health settled a case with the SEC about an unregistered sale of tokens for $ 6.3 million. In addition, the Commission filed a complaint against a New Yorker and two of his companies on suspicions of conducting an unregistered ICO from late 2017 to 2018.

SOURCE