Never Stopped, This Blockchain Company Was Sued By The SEC!

<p>&nbsp;"Actually, the SEC wants to sue all crypto-related companies if possible."</p><p><br /></p><p>Blockchain securities company Quanstamp is set to return $28 million raised in its 2017 initial coin offering (ICO) after being sued by the United States (US) Securities and Exchange Commission (SEC).</p><p><br /></p><p>Reportedly, the SEC charged the California-based company on July 21, 2023 with conducting an unregistered ICO.</p><p><br /></p><p>Not only that, the SEC also showed how Quantstamp's ICO that took place in October and November 2017 raised more than $28 million through the sale of tokens founded by QSP to around 5,000 investors.</p><p><br /></p><p>However, it should be noted that Quantstamp's ICO is intended to use the results of their ICO to develop including marketing the security auditing of the automatic smart contract it developed.</p><p><br /></p><p><br /></p><p>Even so, the SEC's view of Quantstamp's business has caused QSP buyers to expect their tokens to increase in value.</p><p><br /></p><p>According to the SEC, Quantstamp violated the registration provisions of federal securities laws and without admitting or denying the regulator's allegations, the company agreed to a cease and desist order and a disgorgement payment* of more than $1 million.</p><p><br /></p><p>*Requiring parties who profited from illegal or wrongful acts to forfeit any profits they made as a result of the illegal conduct</p><p><br /></p><p>In addition to being instructed to establish a "Fair Fund" to return funds to affected investors, Quantstamp also agreed to transfer its own QSP token holdings to the Fair Fund administrator with the token set to be permanently destroyed.</p><p><br /></p><p>Not only that, the SEC order also states that Quantstamp will no longer operate or actively support automated smart contract security auditing following its use in June 2019.</p>