The United States Securities and Exchange Commission (SEC) has issued a cease and desist order and a $200,000 fine to Crypto Asset Management (CAM) and its founder Timothy Enneking.
This is according to a document published on the commission’s website.
According to CNBC, this is the very first SEC disciplinary move against a digital asset management fund.
The SEC ruling says that CAM “misrepresented” itself as the “first regulated crypto asset fund in the United States,” and raised $3.6 million from 44 investors late last year, raising its net asset value to $37 million.
The filing also indicated that the fund has “never been registered with the Commission in any capacity.” The SEC claimed that CAM “willfully” breached the law by asserting to have the pertinent credentials linked with holding and trading securities.
After the SEC got in touch with them, the company has consented to stop its public offering and has even offered a buyback to investors. CAM has also decided to pay the fine, while it has not confessed guilt to the commission’s allegations.
In addition, the SEC handed down an order against “ICO superstore” TokenLot. The Commission claimed that TokenLot violated the law by lacking registry. Similar to CAM, the firm has also settled to pay a $471,000, but has not formally admitted to violating the law.
In a further move from regulators, the U.S. Financial Industry Regulatory Authority (FINRA) has filed charges against a man from Massachusetts for securities fraud and unlawful distribution of an unregistered cryptocurrency HempCoin. If FINRA admits there were breaches of securities law, Timothy Tilton Ayre or his public company, Rocky Mountain Ayre, Inc. (RMTN), might get slapped with a fine, censure, suspension, or even be banned altogether from the securities industry.
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