SEC drops the hammer on Enigma's $45 million ICO

The SEC has forced crypto project Enigma to return the funds raised in a $45 million ICO in 2017 to harmed investors. It has also charged the project $500,000 for selling unregistered securities.

“All investors are entitled to receive certain information from issuers in connection with a securities offering, whether it involves more traditional assets or novel ones,” said John T. Dugan, associate director for enforcement in the SEC’s Boston Regional Office, in a statement. “The remedies in today’s order provide ICO investors with an opportunity to obtain compensation and provide investors with the information to which they are entitled as they make investment decisions.”

Enigma will now need to register its tokens as securities, and file periodic reports with the SEC.

Enigma looks past SEC charges

While this might be a blow for the nascent project, it seems more like a relief.

"This settlement clears the way for our development team to focus fully on our original and continued vision: building groundbreaking privacy solutions that improve the adoption and usability of decentralized technologies, for the benefit of all," Enigma CEO Guy Zyskind wrote in a blog post.

We will report more as more details come in.