Description
The SEC sues Wireline for making materially false and misleading statements while raising more than $16 million through SAFTS to fund the development of a platform intended to facilitate the creation and exchange of microservices. Wireline falsely indicated that the distribution of WRL tokens was imminent, in which WRL were alleged to be unregistered securities.
Legal Significance
Wireline agreed to pay a $650,000 penalty and notify investors that the tokens would not be distributed. This case highlights the SEC’s stance on ensuring token offerings comply with securities laws and the risks associated with using SAFTs in unregistered securities offerings.
Issues
Status
Cease-and-Desist
Case No.
File No. 3-20206
Date Filed
January 15, 2021
Plaintiff
SEC
Defendant
Wireline Inc.
Court
-
Plaintiff Counsel
-
Defendant Counsel
-
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