Today (September 11th), the SEC has taken aim at crypto once again, with a cease-and-desist order against Crypto Asset Management (CAM), which is headed up by Timothy Enneking. According to the order, CAM have committed four separate violations, including the sale of securities, engaging in interstate commerce without SEC registration, and wilfully misleading statements in order to make sales.
As well as a cease-and-desist order, the SEC has also ordered that CAM pay a $200,000 fine, split as follows:
$100,000 paid within 10 days of the entry of this Order; $25,000 paid within 75 days of the entry of this Order; $25,000 paid within 150 days of the entry of this Order; $25,000 paid within 225 days of this Order; and $25,000 paid within 300 days of this Order.
This marks the first time that the SEC has come after an asset management fund in the crypto space, but according to the order, Enneking and CAM have not contested the fine, and will pay.
Meanwhile, a separate press release from the SEC today also stated that TokenLot LLC will pay charges of $471,000 for acting as unregistered broker dealers – although, as with the CAM case, neither CEO has publicly admitted any wrongdoing. The release claimed that “TokenLot, Lenny Kugel, and Eli L. Lewitt promoted TokenLot’s website as a way to purchase digital tokens during initial coin offerings (ICOs) and also to engage in secondary trading. Michigan-based TokenLot received orders from more than 6,100 retail investors and handled more than 200 different digital tokens, which the SEC found included securities. The business’s profits included trading profits and a percentage of the money that TokenLot raised for ICOs.”
Stephanie Avakian, the SEC’s Enforcement Division co-director, explained: US securities laws protect investors by subjecting broker-dealers and other gatekeepers to SEC oversight, including those offering ICOs and secondary trading in digital tokens. We continue to encourage those developing digital asset trading businesses to contact the SEC staff at [email protected] for assistance in analyzing registration and other securities law requirements.
Image Credit: Deposit Photos
What do you think about these latest fines from the SEC? Will there be any let-up or will the crackdown continue? Let us know your thoughts.