Lesson learnt. That is the overwhelming feeling that the Block.One, will be feeling today. Block.One have settled a $24m lawsuit over the EOS ERC20 token, which has now been deemed a security. The SEC have deemed that the ICO was a securities sale. While $24m seems like a significant penalty that they have agreed to settle on, it is less than 1% of the $4Bn raised over the course of a year,
In a statement addressing the settlement agreement with the SEC, Block.One have confirmed that the ERC20 token is no longer circulating, and was replaced by the native EOS token after the network had gone live.
“The settlement relates specifically to the ERC-20 token sold on the Ethereum blockchain during the aforementioned period, which is no longer in circulation or traded, and will not require the token to be registered as a security with the SEC.”
Furthermore the SEC have issues a waiver to Block.One which means the token will not need to be registered as such, as it is no longer in circulation. They have also confirmed that all ongoing matters have now been resolved between the SEC and themselves.