The team of the blockchain platform Protostarr reported about the forced closure of the project and the start of the refund process to investors who previously supported its ICO. This decision was made after a telephone conversation with representatives of the US Securities and Exchange Commission (SEC).
Protostarr website is unavailable now, but information about the shutdown can be found there.
On August 24, 2017, we were contacted by the United States Security and Exchange Commission regarding the initial coin offering of Protostarr tokens to fund the development of our Ethereum decentralized application. After consultation with multiple lawyers, we have decided to cease further operations and refund Ethereum collected in our crowdsale that began on August 13, 2017.
Like many of our supporters, we were excited to be an innovative force in the emerging space of content creation and its funding. Unfortunately, as a startup, we do not have the necessary resources to both develop our DApp and challenge the SEC’s investigation regarding our ICO and its interpretation under US securities law.
Protostarr planned to create the decentralized platform, with which the rising stars of YouTube, Twitch or other video and streaming sites could organize the donation process from their fans. In August, the Protostarr team launched the ICO, they planned to raise funds for development, collecting 119.5 ETH (about $ 40,000 at the current rate).