Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Popular stocks

Crypto

CFD

Currencies

Support

Gold

Home » Crypto Market News » SEC Triumphs in Court Against Opporty International Over Fraudulent ICO

SEC Triumphs in Court Against Opporty International Over Fraudulent ICO

  • September 27, 2024
  • 59

The U.S. Securities and Exchange Commission (SEC) has secured a notable court ruling against the blockchain company Opporty International and its founder, Sergii Grybniak, in a case concerning an allegedly fraudulent initial coin offering (ICO). A memorandum released by U.S. District Judge Eric Komitee on September 24 indicated that the SEC successfully established its claims regarding the unlawful sale of unregistered securities by Opporty and Grybniak.

The legal action against Opporty and its owner was initiated by the SEC in January 2021. The regulatory body accused the company of conducting a deceptive ICO, wherein they offered what were classified as “unregistered digital asset securities.” Following the pertinent legal framework, Judge Komitee determined that the “OPP” tokens sold during the ICO constituted investment contracts as defined under federal securities law, thus necessitating registration with the SEC.

The SEC contended that the ICO pre-sale was in violation of Section 5 of the Securities Act of 1933, which stipulates the requirements for the registration and distribution of securities. Grybniak’s defense rested on the assertion that the token sale was permissible under Regulation D/S exemptions, which apply in scenarios devoid of public offerings and for accredited investors, or when sales occur outside the United States.

However, Judge Komitee found merit in the SEC’s argument, stating that Opporty and Grybniak did not satisfy the exemption qualifications of Regulation S because they actively sought buyers within the U.S. The ICO, conducted between September 2017 and October 2018, raised $600,000 from nearly 200 investors domestically and internationally. The SEC maintained that Opporty violated regulations by failing to register the token sale.

Opporty presented itself as a platform designed to facilitate a blockchain-based ecosystem for small businesses and their clients, focusing primarily on the U.S. market. The intention was to enable small enterprises to showcase their services and engage in agreements through the use of smart contracts.

This site is registered on wpml.org as a development site.