As a part of the settlement, blockchain startup Enigma has agreed to register their tokens as securities and file periodic reports. Enigma will also pay $500,000 in penalties.
The US Securities and Exchange Commission had charged Enigma for offering unregistered securities worth $45 million in 2017 under its ICO. According to the announcement, blockchain startup Enigma has agreed to return funds to harmed investors via a claims process and pay half a million dollars in penalties.
As per the settlement, the blockchain startup Enigma has to register its ENG tokens as securities with the SEC in addition to a $500,000 penalty. Enigma raised approximately 445 million from sales of its digital assets, ENG tokens, in 2017. According to the SEC’s findings, Enigma did not register its ICO as securities offering under the federal securities laws, and its ICO did not qualify for an exemption from the registration requirements.
The SEC’s order requires the blockchain startup to desist from committing or causing any violations of the registration provision of the federal securities laws.
Based in San Francisco and Israel, Enigma announced the launch of its mainnet on 13th February. The first mainnet is supported and operated by over 20 independent validators from the Enigma ecosystem and community. Enigma’s mainnet is a proof-of-stake-based blockchain based on Cosmos SDK. Enigma network is a decentralized protocol to enable secure computation over encrypted data.