SEC v. Munchee

The SEC sues Munchee Inc. for conducting an unregistered securities offering through its ICO of MUN tokens. The company advertised the tokens as integral to the platform's ecosystem, claiming that they would increase in value as the platform grew and that they would be tradeable on secondary markets.

The SEC found that Munchee violated securities laws by not registering the offering of MUN tokens with the SEC. Munchee agreed to halt its ICO and refund investor funds without admitting or denying the SEC’s findings. This case, one of the first SEC actions after the DAO Report, further highlighted that simply labeling a token as a utility token does not exempt it from securities regulation.

File No. 3-18304