The stablecoin project Basis faced with regulatory problems in the United States and decided to close. Investors are allegedly promised to receive reimbursement.

$133 million gone with the wind

Basis was allegedly unable to resolve issues with the US financial authorities, and the project decided to stop all operations, reports The Block, citing anonymous sources familiar with the matter. The claims of the US regulators were associated with the business model and project tokens.

In April 2018, Basis raised $133 million from venture investors, including Bain Capital Ventures, GV, Andreessen Horowitz, Lightspeed Ventures, and others.

According to sources, the project intends to return most of the funds raised.

Another ICO project, AriseBank, is also forced to return the raised money to its investors. But unlike Basis, AriseBank was accused of fraud and selling unregistered securities in January 2018.

Now, according to the court decision, the creators of the “most decentralized bank in the world” AriseBank are obliged to return to investors $2.295 million of invested funds and pay $185,000 in fines. In addition, they will have to pay $68,400 in surcharge for the period of the trial. They are also forbidden to hold senior positions in public companies or projects offering digital securities.

SEC's crusade

The US financial regulator is actively investigating hundreds of ICO projects, suspecting them of selling unregistered securities. According to the joint investigation by Yahoo Finance and Decrypt Media, by October 2018, many ICO projects received warnings from the US regulator that their crowdsales had violated the US law on securities. Dozens of companies silently agreed to return raised money to investors, fearing prosecution by the SEC.

In November, the SEC announced that it had settled tensions with two companies that created projects and conducted initial coin offers (ICO) under their brands - CarrierEQ Inc., also known as Airfoc, and Paragon Coin Inc.

The US regulator fined both companies $250,000, obliging them to return raised funds to investors and to register tokens as securities. Airfoc and Paragon raised $15 million in 2017 and $12 million, respectively.