Opporty International Inc. may be the latest company to receive SEC’s sanctions as the agency has made moves to have the firm returns the proceeds of its 2018 ICO in which it raised some $600,000. The company has been accused of selling its tokens fraudulently according to filings made by the regulator on Tuesday, January 21.
Opporty sold its tokens using the increasingly popular “simple agreements for future tokens (SAFT) in which 200 investors from the United States and other countries participated. The SAFT has been hailed by some project teams as a magic button that makes SEC overlook their sales considering it compliant to the securities laws.
This has not exonerated Opporty as the suit filed by SEC alleged that the company sold unregistered securities during its initial coin offering (ICO). According to the regulator, Opporty Inc and its owner Sergii Grybniak conducted fraudulent sale of the OPP tokens through misrepresentation of material facts.
Among the claims made by SEC was that the company claimed that it had more than 6000 verified users but a close scrutiny by the agency showed that the supposed users were purchased database of individuals who were never providers with the company and never expressed willingness to be.
SEC stated that the company’s problem started when it launched a crowdsale for its token without registering with the agency. It added that if it had consulted the regulator, it would have gotten appropriate guidelines on how to sell its taken which has been classified as security by SEC.
The agency seeks to have the Sergii and Opporty refund its “ill-gotten” gains from the sale and also desist from participating in future sales of securities. The suit demands that Sergii pays penalties and be prevented from acting as a director of a public company.