The U.S. Securities and Exchange Commission (SEC) has issued a restraining request and a $200,000 fine to Crypto Asset Management (CAM) and its owner Timothy Enneking, as per a report published on the commission’s site Tuesday, September 11. As per CNBC, this is the main SEC disciplinary action against a digital asset management fund.
The SEC order says that CAM “mispresented” itself as the “first regulated crypto asset fund in the United States,” and raised $3.6 million from 44 investors in late 2017, bringing its net asset value to $37 million.
As indicated by the filing, the fund has “never been registered with the Commission in any capacity.” Тhe commission demands that CAM “willfully” infringed upon the law by professing to have the vital qualifications related to withholding and trading securities.
Subsequent to being reached by the SEC, the organization has agreed to stop its public offering and has offered a buyback to investors. CAM has also agreed to pay the fine, while it has not admitted to being guilty to the commission’s charges.
Today, the SEC issued a request against “ICO superstore” TokenLot. The Commission says that TokenLot broke the law by neglecting to register. Like CAM, the firm has agreed to pay a $471,000, however, has not formally confessed to disregarding the law.
In a further move from regulators, the U.S. Financial Industry Regulatory Authority (FINRA) has filed charges against a Massachusetts man on September 11 for securities frauds and unlawful circulation of an unregistered cryptocurrency HempCoin. If FINRA admits there was an infringement of securities law, Timothy Tilton Ayre or his public company, Rocky Mountain Ayre, Inc. (RMTN), may get a fine, blame, suspension, or be banished from the securities industry.