Close Menu
  • Crypto News
    • News
    • Bitcoin
    • Blockchain
    • BNB
    • Dogecoin
    • Ethereum
    • Litecoin
    • Meme Coins
    • Solana
    • Toncoin
    • XRP
  • Business
  • Markets
  • Regulation
  • Guides
  • Press Release
What's Hot

Bitcoin Rebounds Middle East Ceasefire Shocks Market

June 28, 2025

Ethereum Developer Barnabé Monnot Pushes 6-Second Slot Plan

June 28, 2025

Metaplanet’s $5 Billion Capital Fuels Bitcoin Strategy

June 27, 2025
Facebook X (Twitter) Instagram
  • About Us
  • Contact Us
  • Terms of Service
  • Privacy Policy
X (Twitter) Telegram
Crypto Junction
  • Crypto News
    • News
    • Bitcoin
    • Blockchain
    • BNB
    • Dogecoin
    • Ethereum
    • Litecoin
    • Meme Coins
    • Solana
    • Toncoin
    • XRP
  • Business
  • Markets
  • Regulation
  • Guides
  • Press Release
Crypto Junction
Home » SEC Cracks Down on Crypto: Unregistered ICOs Face Penalties
Bitcoin Crypto

SEC Cracks Down on Crypto: Unregistered ICOs Face Penalties

Karly MarieBy Karly MarieNovember 16, 2018Updated:March 8, 20253 Mins Read
Twitter Telegram Copy Link Pinterest LinkedIn Facebook Reddit
Share
Twitter Telegram Facebook Pinterest Copy Link

The U.S. Securities and Exchange Commission (SEC) has intensified its oversight of the cryptocurrency industry, targeting unregistered initial coin offerings (ICOs) and fraudulent digital asset schemes. In its latest move, the SEC issued its first-ever civil penalties against crypto companies for failing to register their token sales, marking a significant escalation in regulatory enforcement.

SEC Penalizes Crypto Startups Over Unregistered ICOs

On Friday, the SEC announced settlements with two blockchain startups—Airfox and Paragon—both of which raised over $10 million through ICOs without proper registration. Under the agreement, the companies will:

  • Pay fines imposed by the SEC
  • Register their tokens as securities
  • File periodic financial reports
  • Offer refunds to affected investors

This move underscores the agency’s firm stance that ICOs fall under securities laws and must comply with existing regulations.

Just a week prior, the SEC made another major move by charging EtherDelta, a decentralized exchange, for operating without registration. This was the first enforcement action of its kind against a crypto trading platform, signaling a broader crackdown on digital asset marketplaces.

A Warning to Crypto Founders

The SEC has long warned that most cryptocurrencies—except Bitcoin and Ethereum—are classified as securities. SEC Enforcement Co-Director Stephanie Avakian emphasized that companies issuing digital tokens must follow securities laws:

“These cases tell those who are considering taking similar actions that we continue to be on the lookout for violations of federal securities laws with respect to digital assets.”

With these penalties, the SEC has sent a clear message to the crypto industry: regulatory compliance is non-negotiable.

Crypto Fraud Crackdown: Brooklyn Businessman Pleads Guilty

In a separate but related case, Brooklyn businessman Maksim Zaslavkiy pleaded guilty to securities fraud conspiracy. Zaslavkiy misled investors into buying digital tokens for two ICO projects, “REcoin” and “Diamond,” falsely claiming they were backed by real estate and diamonds.

In reality, there was no blockchain technology behind the tokens, nor any actual assets. Federal prosecutors exposed the scheme, with U.S. Attorney Richard Donoghue stating:

“The calculated lies of Zaslavkiy and others led unsuspecting investors to buy worthless certificates. We will continue to aggressively prosecute those who exploit and defraud investors.”

Zaslavkiy had previously tried to dismiss the charges, arguing that existing crypto laws were “unconstitutionally vague.” However, a Brooklyn judge ruled that the case could proceed under current securities laws, setting a legal precedent for future crypto fraud prosecutions.

The ICO Boom and Regulatory Challenges

The ICO frenzy in 2017 and 2018 saw billions of dollars raised by blockchain startups, often without clear regulations or investor protections. Some projects delivered real products, while others turned out to be scams—or, in some cases, joke cryptocurrencies like Dogecoin, which started as a meme.

According to estimates, ICO fundraising in 2018 alone surpassed $9 billion. However, the SEC has remained firm in its stance: most ICOs constitute securities, and the agency has no intention of changing the definition of a security to accommodate cryptocurrencies.

SEC Chairman Jay Clayton reiterated this earlier in the year:

“If it’s a security, we’re regulating it. We’ve been doing this a long time—there’s no need to change the definition.”

What’s Next for Crypto Regulation?

With regulatory scrutiny increasing, crypto startups must now navigate a stricter legal environment. The SEC’s latest actions make it clear that digital asset projects will be held to the same standards as traditional securities.

For investors, this crackdown serves as a warning—due diligence is critical when investing in ICOs and new cryptocurrencies. The era of unregulated token sales may be coming to an end.

Blockchain crypto fraud Crypto Regulation Cryptocurrency cryptocurrency regulations and legal actions ICO SEC SEC crackdown SEC crypto crackdown latest news unregistered coin offerings unregistered ICOs face penalties
Share. Telegram Twitter LinkedIn Pinterest Facebook Reddit Copy Link
Karly Marie
Karly Marie

Related Posts

Bitcoin Rebounds Middle East Ceasefire Shocks Market

June 28, 2025

Ethereum Developer Barnabé Monnot Pushes 6-Second Slot Plan

June 28, 2025

The COIN Act: Can This Bill Stop Trump’s Digital Cash Flow?

June 27, 2025

Ethereum Price Drop Triggers Biggest ETF Outflow Yet

June 25, 2025
Trending Posts

What’s More Valuable than US$75M? Meet the Heavy Hitters Fueling Coinbase’s Future

January 21, 2015

Ethereum’s Rise: How ICOs and Digital Assets Are Reshaping the Crypto Market

June 8, 2017

Ethereum Dominance Drops to Record Low

May 7, 2025

Subscribe to Updates

Get the latest sports news from SportsSite about soccer, football and tennis.

Crypto Junction, founded in 2014, is one of the original and most trusted sources for cryptocurrency news and blockchain insights. We provide accurate, unbiased, and timely coverage of digital assets, market trends, and industry developments.

All content on Crypto Junction is for informational and educational purposes only and should not be considered financial, investment, or legal advice. Cryptocurrency investments are highly volatile and carry risks. Always conduct your own research before making financial decisions.

We're social. Connect with us:

X (Twitter) Telegram
Top Insights

Bitcoin Rebounds Middle East Ceasefire Shocks Market

June 28, 2025

Ethereum Developer Barnabé Monnot Pushes 6-Second Slot Plan

June 28, 2025

Metaplanet’s $5 Billion Capital Fuels Bitcoin Strategy

June 27, 2025
ABOUT
  • About Us
  • Cookie Policy
  • Editorial Policy
  • Investment Disclaimer
  • Press and Media Kit
  • Terms of Service
  • Affiliate Disclosure
  • Contact Us
NEWSLETTER

Subscribe to Updates

Get the latest crypto news and updates direct to your inbox - we don't spam

X (Twitter) Telegram
  • Altcoin News
  • Bitcoin News
  • Dogecoin News
  • Ethereum News
  • Litecoin News
  • Meme Coin News
  • Solana News
  • XRP News
© 2025 Crypto Junction

Type above and press Enter to search. Press Esc to cancel.

bitcoin
Bitcoin (BTC) $ 107,357.76
ethereum
Ethereum (ETH) $ 2,438.14
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 2.18
bnb
BNB (BNB) $ 648.94
solana
Solana (SOL) $ 150.73
usd-coin
USDC (USDC) $ 1.00
tron
TRON (TRX) $ 0.274568
dogecoin
Dogecoin (DOGE) $ 0.163736
staked-ether
Lido Staked Ether (STETH) $ 2,436.22
cardano
Cardano (ADA) $ 0.565431
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 107,228.73
hyperliquid
Hyperliquid (HYPE) $ 37.66
wrapped-steth
Wrapped stETH (WSTETH) $ 2,943.19
bitcoin-cash
Bitcoin Cash (BCH) $ 492.60
sui
Sui (SUI) $ 2.81
chainlink
Chainlink (LINK) $ 13.39
leo-token
LEO Token (LEO) $ 9.08
avalanche-2
Avalanche (AVAX) $ 17.99
stellar
Stellar (XLM) $ 0.238905
usds
USDS (USDS) $ 0.999909
the-open-network
Toncoin (TON) $ 2.85
whitebit
WhiteBIT Coin (WBT) $ 47.39
shiba-inu
Shiba Inu (SHIB) $ 0.000012
weth
WETH (WETH) $ 2,438.19
litecoin
Litecoin (LTC) $ 86.27
wrapped-eeth
Wrapped eETH (WEETH) $ 2,610.59
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00
hedera-hashgraph
Hedera (HBAR) $ 0.147926
monero
Monero (XMR) $ 310.44
bitget-token
Bitget Token (BGB) $ 4.64
ethena-usde
Ethena USDe (USDE) $ 1.00
polkadot
Polkadot (DOT) $ 3.40
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 107,333.76
uniswap
Uniswap (UNI) $ 7.14
pi-network
Pi Network (PI) $ 0.532928
pepe
Pepe (PEPE) $ 0.00001
aave
Aave (AAVE) $ 260.23
dai
Dai (DAI) $ 0.999847
ethena-staked-usde
Ethena Staked USDe (SUSDE) $ 1.18
aptos
Aptos (APT) $ 4.86
okb
OKB (OKB) $ 50.18
bittensor
Bittensor (TAO) $ 330.67
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00
jito-staked-sol
Jito Staked SOL (JITOSOL) $ 182.81
near
NEAR Protocol (NEAR) $ 2.17
internet-computer
Internet Computer (ICP) $ 4.86
crypto-com-chain
Cronos (CRO) $ 0.080988
ethereum-classic
Ethereum Classic (ETC) $ 16.28
susds
sUSDS (SUSDS) $ 1.06
ondo-finance
Ondo (ONDO) $ 0.760875
usd1-wlfi
USD1 (USD1) $ 1.00
tokenize-xchange
Tokenize Xchange (TKX) $ 27.42
kaspa
Kaspa (KAS) $ 0.077816
mantle
Mantle (MNT) $ 0.60742
gatechain-token
Gate (GT) $ 15.68
fasttoken
Fasttoken (FTN) $ 4.40
vechain
VeChain (VET) $ 0.021234
cosmos
Cosmos Hub (ATOM) $ 3.99
official-trump
Official Trump (TRUMP) $ 9.11
fetch-ai
Artificial Superintelligence Alliance (FET) $ 0.685944
sky
Sky (SKY) $ 0.080435
lombard-staked-btc
Lombard Staked BTC (LBTC) $ 107,679.85
render-token
Render (RENDER) $ 3.24
sei-network
Sei (SEI) $ 0.290572
ethena
Ethena (ENA) $ 0.264148
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.178075
arbitrum
Arbitrum (ARB) $ 0.312018
filecoin
Filecoin (FIL) $ 2.27
algorand
Algorand (ALGO) $ 0.176507
jupiter-perpetuals-liquidity-provider-token
Jupiter Perpetuals Liquidity Provider Token (JLP) $ 4.47
worldcoin-wld
Worldcoin (WLD) $ 0.89591
first-digital-usd
First Digital USD (FDUSD) $ 0.998526
binance-peg-weth
Binance-Peg WETH (WETH) $ 2,437.66
usdtb
USDtb (USDTB) $ 1.00
kucoin-shares
KuCoin (KCS) $ 11.14
binance-staked-sol
Binance Staked SOL (BNSOL) $ 159.96
jupiter-exchange-solana
Jupiter (JUP) $ 0.449369
usdt0
USDT0 (USDT0) $ 0.99971
nexo
NEXO (NEXO) $ 1.20
spx6900
SPX6900 (SPX) $ 1.27
flare-networks
Flare (FLR) $ 0.017523
rocket-pool-eth
Rocket Pool ETH (RETH) $ 2,777.91
bonk
Bonk (BONK) $ 0.000015
kelp-dao-restaked-eth
Kelp DAO Restaked ETH (RSETH) $ 2,553.73
fartcoin
Fartcoin (FARTCOIN) $ 1.09
injective-protocol
Injective (INJ) $ 10.98
polygon-bridged-usdt-polygon
Polygon Bridged USDT (Polygon) (USDT) $ 1.00
blockstack
Stacks (STX) $ 0.667844
celestia
Celestia (TIA) $ 1.48
binance-bridged-usdc-bnb-smart-chain
Binance Bridged USDC (BNB Smart Chain) (USDC) $ 1.00
virtual-protocol
Virtuals Protocol (VIRTUAL) $ 1.52
sonic-3
Sonic (S) $ 0.311198
kaia
Kaia (KAIA) $ 0.170025
xdce-crowd-sale
XDC Network (XDC) $ 0.060209
paypal-usd
PayPal USD (PYUSD) $ 1.00
optimism
Optimism (OP) $ 0.551837
mantle-staked-ether
Mantle Staked Ether (METH) $ 2,606.13
solv-btc
Solv Protocol BTC (SOLVBTC) $ 107,162.71
pax-gold
PAX Gold (PAXG) $ 3,291.64