Enigma settles with SEC over $45 million ICO

Today the SEC announced a settlement with token issuer Enigma MPC over its $45 million ICO. As part of the settlement, Enigma has agreed to return funds to harmed investors via a claims process and register the tokens as securities. Enigma will also be required to file periodic reports with the SEC and pay a $500,000 fine.

Why it matters:

• The settlement is the latest of a series of enforcement announcements regarding ICO projects. Recent SEC enforcement actions against projects include EOS, Kin, Shopin, and Telegram,who each did ICOs throughout 2017 and 2018.
• Enigma also announced the launch of its mainnet today, which is notably powered by a brand new token, Secret (SCRT). The team is currently exploring legally compliant ways for a token swap between the ERC-20 ENG token and the mainnet SCRT coin. For the time being Enigma cannot proceed down this avenue.