For the first time, the SEC (Securities and Exchange Commission) has turned against a cryptocurrency hedge fund for violating the securities law.
On Tuesday, the SEC charged Crypto Asset Management and its founder with a $200,000 fine for running the US-based fund with no proper regulatory approval. In addition to the fine, the Securities and Exchange Commission issued a cease-and-desist letter to stop all the activities immediately.
Timothy Enneking had reportedly received $3.6 million from 44 investors and managed more than $36 million in virtual assets at the end of 2017. Although, the La Jolla which is a California-based fund failed to register with the Commission in any capacity, according to the SEC.
As indicated by filings, Crypto Asset Management also carelessly distorted to the real and prospective investors that it was the “principal regulated crypto asset fund in the United States,” while ensuring that it had registered with the SEC.
In an announcement gave to CNBC, Timothy Enneking emphasised that this is “old news” and that the firm moved rapidly to comply with SEC orders.
The news comes the same day from a federal judge decided that two deceitful ICOs would be classified as securities to be indicted under the federal criminal law. Taken together, it looks s though US regulators are moving to additionally scrutinize cryptocurrency entities under security laws in an obvious effort to set precedent.
Advice For You!
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