The U.S. Securities and Exchange Commission has settled charges against the defunct initial coin offering (ICO) review website Coinschedule.com for violating the anti-touting provisions of federal securities laws.
But two SEC commissioners have penned an open letter in response saying the settlement highlights flaws with the commission’s processes.
According to a July 14 release from the securities regulator, Coinschedule failed to disclose it was receiving compensation from digital asset issuers for favorable reviews.
The settlement’s terms state that Blotics, formerly known as Coinschedule, must pay a penalty of $154,434 plus $43,000 in disgorgement plus interest without admitting or denying the SEC’s findings.
The website operated between 2016 and 2019, with many of its visitors hailing from the United States. The site provided “trust scores” for more than 2,500 ICOs, claiming to assess the “credibility” and “operational risk” of each offering using a “proprietary algorithm.” However, according to the SEC:
“In reality, the token issuers paid Coinschedule to profile their token offerings on Coinschedule.com, a