SEC raised $ 1.26 billion in illegal ICOs in 2020 – Cryptocurrencies

Tablet with ICO hologram

Why don’t governments simply ban the issuance, trading, and custody of cryptocurrencies in its territory? Because cryptos fill their coffers, not by investing in it, but by condemning crypto companies with huge fines.

The Securities and Exchange Commission (SEC) has amassed more than $ 4 billion in fines and illegal income: a good legal business that especially surfs the illegality of many ICOs.

The SEC fund is far from dry

The Securities and Exchange Commission collected nearly $ 4.68 billion in fines and illegal income in 2020.

A judicial official of the SEC, Stephanie avakian, had indicated that the amount of these penalties is the highest recorded to date.

A quarter of this sum comes from the aborted sale of tokens GRAM. In October 2019, the DRY had taken legal action against Telegram to block the launch of sound ICO.

Telegram had to return $ 1.2 billion to investors and acquitted himself with a fine of $ 18.5 million.

The DRY collected a total of $ 1.26 billion under theICO illegal and unregistered.

The fruits of denunciation

The annual report of the DRY for fiscal year 2020 indicates that among the actions carried out by the commission, 8 concern ICO.

These represent 30.2% of the independent actions taken by the commission which include several categories including insider trading, market manipulation and corrupt practices abroad.

One of these cases concerns Kik who had to pay a penalty of $ 5 million for a sale of unregistered securities.

The other 6 actions were carried out against Bitclave, Shopin, the NAC Foundation, Unikrn, Boon Tech and Bitcoiin2Gen. Of the 4.68 billion collected, 600 million had been returned to the victims.

The whistleblower program DRY has been described as an essential part of the commission to detect wrongdoing and protect investors.

It enabled 39 people to receive a total of $ 175 million in awards.


Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Will the legal environment in northern countries one day work in favor of cryptocurrencies? Yes, there are mining havens, but that is not enough. The state of Wyoming is encouraging the emergence of a hybrid model of banking and crypto-exchanges. We need to go further by loosening the grip on crypto operations. Sanctions are not the only device capable of protecting investors: education is more effective.


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