$65 Mln raised by Blockchain Settlement Platform Paxos

Formerly bitcoin exchange itBit, blockchain settlement platform Paxos has completed  a $65 million Series B round of financing headed by existing investors
01 June 2018   429

Paxos which is placed in New York, unvealed the Series B round was led by a group of current investors including Liberty City Ventures, RRE Ventures, Jay Jordan in order to use the capital to ‘significantly’ scale operations and widen its presence as a blockchain settlement platform in international markets.

This additional funding will further our goals to eliminate settlement risk and expand our product offerings across geographies. We are continuing to invest in expanding our platform that simplifies our financial infrastructure, offers greater control and lays the foundation for the future.
Andrew Chang
COO, Paxos

The Series B round is Paxos’ first financing campaign since its $25 million Series A round in May 2015, processing at itBit at the time. The company claimed it has now raised a total of $93 million in funding to date. Known as the first bitcoin exchange to take a New York banking license in 2015, itBit received a banking charter resemble to the Winklevoss brothers’ Gemini exchange before its rebrand to Paxos in 2016.

It is a crucial time in the financial markets. We are at an inflection point to reduce the risk in our financial system and free capital trapped by an archaic settlement system.
Charles Cascarilla
CEO, Paxos

The firm started to be based on blockchain settlement of trades in securities and precious metals (gold, etc.). In December 2016, Paxos ended a pilot with Euroclear, the biggest settlement provider of Europe, in 2 weeks involving over 600 over the counter gold bullion trades settled on the company’s’ blockchain. The New York Department of Financial Services (DFS) in May 2018, the state’s financial regulator, presented another license to Paxos in authorizing the company’s blockchain post-trade platform Bankchain as a precious metals` solution. 

SEC to Slap ICO Founder With $30K Fine

Additionally, David Laurance, founder of Tomahawk Exploration LLC got 2 lifetime bans
15 August 2018   118

The US Securities and Exchange Commission (SEC) on Tuesday reported that it has issued two new bans directed against David Laurence, the founder of Tomahawk Exploration LLC. Tomahawk allegedly stands behind fraudulent ICO, writes CoinDesk.

Laurence, according to the SEC, raised funds through the sale of Tomahawkcoin tokens, in the process of using misleading advertising materials and fraudulent statements that it is a tenant of drilling sites.

Moreover, the sale of Tomahawkcoin tokens, according to the SEC, was accompanied by a false promise that "the holders of tokens will be able to exchange Tomahawkcoin for shares and receive a potential profit from oil production and secondary tokens trading."

According to the SEC, Lawrence neither acknowledged nor denied the charges, but he and his company agreed to these bans, as well as a fine of $ 30,000.

...Tomahawk issued tokens as part of the Bounty Program to generate interest in the ICO, which benefited Tomahawk. Distribution of tokens that are securities in exchange for promotional services to advance the issuer's economic objectives or create a public market for the securities constitute sales for purposes of Section 5 of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
 

SEC

The first prohibition of the SEC is a ban on the director's work in public companies, and the second does not allow Lawrence to own and trade in so-called "penny" shares. Both prohibitions, according to the announcement of the SEC, are lifelong.