United States Securities and Exchange Commission (SEC) fined a platform for trading security tokens tZERO for $ 800,000 for violating federal rules regarding alternative trading systems.
According to the January 10 order, the company did not properly disclose its use of trading data outside of the United States. We are talking about the Singapore-based company Blue Ocean Financial Technology – in 2017 it was bought by the retail industry giant Overstock, which includes tZERO.
The platform offered the SEC to resolve the conflict without recognizing or refuting the agency’s findings. In addition to the fine, she was ordered to refrain from violations in the future.
This is not the first claim from the American regulator against tZERO. In March 2018, the Commission became interested in the token sale platform, and two years later, it expanded the investigation.
Then Overstock received a request to provide “documents related to GSR Capital’s investments, as well as an alternative trading system tZERO.” In another process, the regulator decided to review the “insider trading policy, as well as some labor and consulting agreements.”
In 2019, investors accused Overstock and its former CEO Patrick Berne of securities fraud. After the latter left the company, a number of investors left tZERO.
In May 2020, Overstock appealed against a lawsuit related to the security token airdrop. Representatives of the firm called the accusations of market manipulation and dissemination of false information groundless.
Recall January 5, 2022 CFTC fined the Polymarket prediction platform $ 1.4 million for servicing OTC binary options trading without proper registration.
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