The SEC sues ShipChain Inc. for conducting an unregistered securities offering. ShipChain raised nearly $27.6 million through an ICO of SHIP tokens, which were marketed as a means to facilitate transactions on its logistics platform, where the tokens would be used to pay for services.
The SEC determined SHIP tokens to be securities under Howey. The SEC found that the token sale was conducted without appropriate disclosures and protections for investors that are required in securities offerings. ShipChain agreed to cease operations, return funds to investors, and pay a $2.05 million penalty. ShipChain was also required to disable all trading of SHIP tokens and notify all digital asset trading platforms to stop transactions involving these tokens.
File No. 3-20185
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