The US regulator achieved a settlement with the developer of the blockchain platform EOS. Now Block One will pay $24 million for selling unregistered securities to investors.

The US Securities and Exchange Commission (SEC) reached a settlement with Block One to pay fines worth totally $24 million. According to the US regulator, during the initial coin offering (ICO), Block One sold unregistered securities, the SEC press release reads. Block One agreed to pay fines, but did not recognize or disprove the findings of the commission.

According to the SEC statement, Block One's ICO, during which 900 million tokens were sold, "began shortly before the SEC released the DAO Report of Investigation and continued for nearly a year after the report’s publication, eventually raising several billion dollars worth of digital assets globally, including a portion from US investors."

Block One raised the equivalent of four billion dollars, but did not register the tokensale in accordance with US federal securities laws, and “nor did it qualify for or seek an exemption from the registration requirements,” SEC noted.

“A number of US investors participated in Block.one’s ICO,” said Stephanie Avakian, Co-Director of the SEC’s Division of Enforcement.  “Companies that offer or sell securities to US investors must comply with the securities laws, irrespective of the industry they operate in or the labels they place on the investment products they offer.”

Steven Peikin, co-director of the SEC’s Division of Enforcement, added that Block One did not provide investors with the necessary information:

“The SEC remains committed to bringing enforcement cases when investors are deprived of material information they need to make informed investment decisions.”