The US Securities and Exchange Commission (SEC) has issued a cease and desist order against Shipchain and ordered it to pay a penalty of $2.05 million. Additionally, the regulator has directed Shipchain, a shipping and logistics company, to transfer Ship tokens in the possession or control of the company’s directors to a “fund administrator.”

Unregistered Token Sale

In a statement announcing the cease and desist order, the SEC alleges that Shipchain, which “promoted its company and the ICO through various media,” raised $27.6 million from a pre-sale held towards the end of 2017 and early 2018. The regulator explains:

In total, Shipchain sold approximately 145 million Ship tokens to over 200 people or groups of people, including U.S. persons, for approximately $27.6 million (comprised of fiat currency and digital assets, such as Bitcoin or Ether, valued at the time of receipt).

The SEC insists that “token purchasers had a reasonable expectation of profits based on the efforts of…

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