The SEC has resolved charges filed against Loci Inc. and its CEO John Wise in relation to an unlicensed securities sales in which they were accused of making materially misleading claims in relation to the offering of digital asset securities.
The watchdog noted in a press statement that it had solved the allegations in return for a cease and desist order against the company and its CEO, an endeavor to demolish any remaining unlicensed tokens, publication of the eventual result on the corporation’s social networks, and a promise not to take part in potential digital asset securities offerings.
Wise will be barred from serving as an officer or director as part of the settlement, and also a $7.6 million civil fine.
According to the SEC, Loci provided an intellectual property search engine via its InnVenn platform, for which it issued LOCIcoin tokens from 2017 to 2018. The sale generated $7.6 million. However it was based on misinformation about the company’s income, personnel count, and its customers.
Wise was also found to have misappropriated $38,163 in cash intended for personal needs, according to the order. While the token release was deemed to be a legitimate securities offering, the business had not filed it with the SEC in the appropriate manner.
The company and Wise had deceived customers to a considerable extent in seeking their unlicensed securities tokens for sale, as per Kristina Littman, Chief of the SEC Enforcement Division’s Cyber Unit.
“Loci and its CEO misled investors regarding critical aspects of Loci’s business. Investors in digital asset securities are entitled to truthful information and fulsome disclosures so they can make informed investment decisions.”