SEC to Accuse Opporty International in Illegal ICO

The company had sold $600k worth OPP Tokens, which are being considered by the watchdog as an unregistered securities
22 January 2020   441

The US SEC claims that Opporty International has raised about $ 600,000 from nearly 200 investors in the illegal ICO process, and its founder, Sergey Gribnyak, is accused of conducting a fraudulent initial coin offering process.

According to the US SEC, the blockchain company sold OPP Tokens, which are unregistered securities with digital assets.

The Securities Commission claims that the blockchain company Opporty lied to its users, claiming that their ICO was regulated.

The SEC claims that Opporty has condoned several illegal acts, including the misappropriation of third-party content without endorsement or attribution, to create the false impression that actual users of the platform created this content. Regulators say the defendants falsely told their potential investors that they had “taken on board” the company with more than 6,000 trusted suppliers.

As stated in the SEC complaint, Opporty violated five sections of the Securities and Exchange Act. Regulators are seeking an injunction to allow the company to place digital or other securities. The document also mentions Clever Solution Inc, another business run by Gribnyak, accused of, among other things, extortion.

US Crypto Companies to Support TON in Case With SEC

The Blockchain Association said Telegram taken sufficient measures to ensure that the Gram token offer met SEC requirements
23 January 2020   456

The Blockchain Association, which combines companies such as Coinbase, Circle, 0x and Ripple, issued an expert opinion as part of the ongoing proceedings of the US Securities and Exchange Commission (SEC) with Telegram.

Previously, the Digital Commerce Chamber launched a similar initiative. The blockchain association, however, was more straightforward and stated that Telegram had taken sufficient measures to ensure that the Gram token offer met SEC requirements. According to members of the organization, the actions of the SEC can damage not only Telegram, but the market as a whole.

The Court should not block a long-planned, highly anticipated product launch by interfering with a contract between sophisticated private parties. Doing so would needlessly harm the investors that securities laws were designed to protect.

 

The Blockchain Association

The Blockchain Association notes that for many years it has not been possible for SEC to obtain clear and unambiguous guidance for conducting activities in the cryptocurrency space, while the claims of the regulator make the current situation even more ambiguous. 

The SEC’s lawsuit also raises novel questions regarding whether companies are forbidden from raising funds from sophisticated U.S. investors, under well-established regulatory provisions, to build blockchain networks.

 

The Blockchain Association

They cite examples of startups TurnKey Jet and Pocketful of Quarters, in respect of which the regulator recommended not to apply legal measures, adding that such litigations inevitably involve high costs and do not guarantee industry participants that they will not be prosecuted in the future.

Telegram discussed its plans with SEC staff for a year and a half, provided copious information and responded to limited feedback by adjusting the design of its transaction. Yet, at the end, the SEC has sued, and the SEC’s briefs thus far say nothing about the substance of those discussions. 

 

The Blockchain Association

In conclusion, the group asks the court to “reject the SEC’s arguments that the not-yet-in-existence Grams were securities at the time of the Purchase Agreements.”