Connect with us

Digital Assets Settles Second Lawsuit Stemming from Past ICO

Updated on

A resolution to a longstanding lawsuit between the Crypto Assets Opportunity Fund (CAOF) and has finally been reached, which will see on the hook for $27.5M.

The aforementioned settlement stems from an ICO, which ran between June 2017 and June 2018.  This event, which was controversial at the time due to its extended run-period, successfully generated over $4B for

Although may have been successful in convincing investors to hand over their hard-earned funds, both the SEC and CAOF were not as impressed – each of which alleged the ICO constituted the illegal offering of unregistered securities.

While a settlement may have been reached, has remained steadfast in its innocence.  Rather, the settlement was reached as a means of finally putting its past behind it, so that it could look forwards instead.

The company states that, “ believes this lawsuit was without merit and filled with numerous inaccuracies.  However, accepting this settlement allows us to focus more time and energy on running our business and delivering new products.” did not elaborate on what these inaccuracies were, however they did allude to a productive future with new products on the way.

A Growing Tally

Notably, this settlement is the second of its kind to stem from’s ICO.  This first occurred roughly two years ago when the Securities and Exchange Comission (SEC) targeted due to the ICO.

Not only was a settlement reached in both instances, but the agreed upon figures were quite similar – the SEC received $24M while the CAOF received $27.5M.

Cumutively has paid a total of $51.5M in settlement fees to date.  While this may be a lofty total, it is a ‘drop in the bucket’ when compared to the $4B that the company was able to raise.

Settlements Preferred

Over the past few years, there have been many lawsuits levied against companies which took part in ill-thought out ICOs, and similar actions.  Interesting, it seems as though all parties involved seem to prefer opting for settlements as opposed to seeing the lawsuits through.  The following are a few other examples of settlements reached between the SEC and other blockchain related companies from years past.

Joshua Stoner is a multi-faceted working professional. He has a great interest in the revolutionary 'blockchain' technology.

Advertiser Disclosure: is committed to rigorous editorial standards to provide our readers with accurate reviews and ratings. We may receive compensation when you click on links to products we reviewed.

ESMA: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Investment advice disclaimer: The information contained on this website is provided for educational purposes, and does not constitute investment advice.

Trading Risk Disclaimer: There is a very high degree of risk involved in trading securities. Trading in any type of financial product including forex, CFDs, stocks, and cryptocurrencies.

This risk is higher with Cryptocurrencies due to markets being decentralized and non-regulated. You should be aware that you may lose a significant portion of your portfolio. is not a registered broker, analyst, or investment advisor.