The U.S. Securities and Exchange Commission has been cutting deals in recent months with cryptocurrency projects it has deemed to be in violation of the so-called Howey test, a rule-of-thumb for determining whether an asset qualifies as a security and, therefore, must be registered with the agency. I spoke with some of the entrepreneurs who ran afoul of the commission to learn what they might have done differently and where they believe the industry is headed.

Victor Santos, CEO of Airfox, a peer-to-peer lender that raised $15 million in a 2017 “initial coin offering,” or ICO, expressed regrets about his company’s fundraising on a call with Fortune. As part of an agreement reached with the SEC in the fall, Airfox agreed to pay the agency a penalty of $250,000, to offer investors a refund of their money plus interest, and to file regular, audited financial statements moving forward, turning the startup into something of a quasi-public company. “What we’re hoping for is by us being…

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Source: https://fortune.com/2019/03/25/sec-ico-airfox-gladius-settle-bitcoin-fake-volume-apple-card-kik-facebook/