Quantstamp Settles With SEC for $3.4 Million Over Unregistered ICO A blockchain security company, Quantstamp, has agreed to pay approximately $3.4 million to settle charges by the Securities and Exchange Commission (SEC) for conducting an unregistered initial coin offering (ICO). The SEC accused Quantstamp of raising around $28.35 million through the sale of its QSP token to over 5,000 investors in 2019. The company settled without admitting or denying the charges and the SEC established a fair fund to return the money to investors.

Odaily Planet Daily News The U.S. Securities and Exchange Commission (SEC) accused Quantstamp's initial token offering (IC0) in 2017 as an unregistered securities offering. Quantstamp raised more than $28 million by selling QSP tokens to approximately 5,000 investors, according to legal documents. The filing also states that the company plans to use the ICO proceeds to develop a protocol on the ethereum blockchain that will provide automated security audits for smart contracts. Quantstamp agreed to settle the charges without admitting or denying the SEC's findings, paying nearly $2.5 million in disgorgement and prejudgment interest in addition to a $1 million civil penalty. The automated smart contract security audit platform the company built in June 2019 is no longer operational. A spokesman for Quantstamp did not immediately respond to a request for comment by press time. (blockworks)

According to PANews news on July 26, according to Blockworks, the US Securities and Exchange Commission (SEC) accused Quantstamp of conducting an unregistered initial coin offering (ICO) of encrypted securities in 2017. Quantstamp raised more than $28 million by selling QSP tokens to roughly 5,000 investors, according to legal filings. The filing adds that the company plans to use the ICO proceeds to develop a protocol on the ethereum blockchain that will provide automated security audits for smart contracts. The company allegedly led QSP purchasers to expect the value of the tokens to increase with the success of the Quantstamp business. In a press release last week, the SEC said it had taken steps to make the tokens tradable on third-party digital asset exchanges following the ICO. Quantstamp agreed to settle the charges without admitting or denying the SEC's findings, paying nearly $2.5 million in disgorgement and prejudgment interest in addition to a $1 million civil penalty. The company's automated smart contract security audit platform, built in June 2019, is no longer operational.

Jinse Finance reported that according to the cease and desist order on July 21, the US SEC accused Quantstamp’s initial coin offering (ICO) in 2017 as an unregistered encrypted security. According to legal documents, Quantstamp allegedly raised more than $28 million by selling QSP tokens to approximately 5,000 investors. It added that the company plans to use the ICO proceeds to develop a protocol on the ethereum blockchain that will provide automated security audits for smart contracts. According to the document, the automated smart contract security audit platform the company built in June 2019 is no longer in operation, and Quantstamp agreed to settle the charges without admitting or denying the SEC's findings, paying nearly $2.5 million in disgorgement and pre-judgment interest in addition to a $1 million civil penalty.