SEC Nails Enigma ICO: Orders Refund, Registration and Fine

Andrew Cummings
February 21, 2020

Enigma, a Blockchain startup, has settled charges with the Securities Exchange Commission for selling its tokens as unregistered securities.

Nonetheless, the launch of the Enigma Mainnet ensures that the venture will survive, since once a decentralized blockchain network is propelled it can't be brought down as long as nodes/validators keep making sure about the security of the network.

The United States Securities and Exchange Commission (SEC) issued a press release announcing the agreement reached with Enigma. The crackdown is expected to continue as more evidence is gathered from companies in the wake of the 2017 ICO craze. It also points out that investors who purchased ENG tokens will have the right to request a refund with interest, however, those that are happy with their investment can hold on to their tokens. Also, Enigma didn't register its ICO as a securities offering pursuant to the federal securities laws.

John Dugan, Deputy Director of Enforcement at SEC, said that investors have a right to receive information about ICOs and the companies that issue them.

Enigma accepted all of the demands of the SEC without admitting or denying any of the facts.

Obviously Enigma has been in converses with the SEC since 2017, and it shows up this understanding will make ready for Enigma to proceed with improvement. According to the update, the start-up successfully launched its first Enigma mainnet that is operated by 20 independent validators. At the mainnet launch, full secret contract functionality was not available, so the team is dedicated to employ and integrate it through a voting system channelized by the community in a hard fork in the near future.

Enigma takes pride in being a revolutionary blockchain-based project protocol that brings real utility to decentralization.

Enigma themselves have stated that the issue being put to rest is good for them as it opens up new avenues for development. The approved changes will increase the level of decentralization of the new mainnet which has been left, according to Enigma, totally under the operation of the validators.

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