SEC orders Bloom Protocol to register BLT token as security or face $31M fine

The Securities and Exchange Commission (SEC) sent a letter of cancellation It asks Bloom Protocol (BLT) to register its tokens as securities or risk fines of up to $31 million.

In an 18-page letter sent on August 9, the SEC announced that Bloom will offer BLT tokens through an initial coin offering (ICO) between November 14, 2017 and January 2, 2018. He was accused of violating securities laws by doing so.

The cryptocurrency startup has raised $30.9 million from 7,358 investors worldwide, according to the SEC. The company continued that he must refund those who purchased BLT tokens before January 2, 2018.

Bloom agrees to register with the SEC

The SEC requires Bloom to agree to register the BLT as a security, to retain an auditor to initiate an audit of the entity, and to provide a full-time noted that it took swift corrective action, including hiring more employees.

The Bloom Protocol was launched in 2017 with the aim of using blockchain technology to revolutionize the credit scoring industry.

According to the commission, the participants of the ICO will โ€œbuild on Bloomโ€™s efforts to use the proceeds from the offering to create an online identity system that will increase the value of its tokens on crypto-asset trading platforms in the future.โ€ I purchased BLT on the basis of “reasonable expectation of profit.” โ€

According to the SEC, BLT qualifies as an unregistered security because it is not registered with the Commission and does not meet the requirements for such exemption from registration.

Following this news, the BLT, which peaked at $1.51 in May 2018, has fallen 36.4% over the past 24 hours. It is currently trading at $0.0168.

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