American CryptoFed’s S1 Registration Fails; Risk Token Sale
- The SEC initiated proceedings to suspend the registration of American CryptoFed.
- The incident was caused by the failure of American CryptoFed to provide sufficient information in the S1 registration form.
- As a result, the first DAO would ban the sale of its Ducat and Locke tokens.
The Securities and Exchange Commission initiated proceedings against the Wyoming Decentralized Autonomous Organization, the American Crypto Fed, to stop the registration and sale of its digital assets, Ducat Token and Locke Token.
Previously, in September 2021, the American Crypto Fed issued a Form S1 registration statement, which did not include any important information on business, management, and financial performance.
Furthermore, the format was not clear enough to determine whether the symbols were protected; the statement was misleading and even contained some omissions.
Interestingly, the Enforcement Division said that CryptoFed did not cooperate during the review of the registration statement, saying that it is necessary for any company that wants to issue crypto assets as a security to disclose the required information to the SEC:
Commenting on the failure of the American CryptoFed to provide clear information, David Hirsch, Chief of the Enforcement Division’s Crypto Assets and Cyber Unit said:
American CryptoFed not only failed to comply with Disclosure requirements of the federal securities laws, but also said that the exiting Securities require registration is not really exiting securities at all. The Enforcement Division wants to suspend the registration of American CryptoFed to protect investors from misleading information.
In particular, in July 2021, the Secretary of State of Wyoming Edward Buchanan confirmed that the authorities have approved the American CryotoFed DAO as a legal entity, adding that “I am proud to continue this innovation by providing legal protection to Independent Organizations.”
However, after discovering the errors in the Form S1, American CryptoFed is in danger, facing the risk of losing its registration.
American CryptoFed’s S1 Subscription Fails; Token Sale at Risk appeared first on Coin Edition.
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