The Ontario Securities Commission (OSC) recently approved a
settlement agreement with cryptocurrency consulting company
CoinLaunch Corp over allegations the company engaged in, and held
itself out as engaging in, the business of trading in securities,
without being registered to do so.
Under the settlement agreement, CoinLaunch will pay more than
$50,000 in penalties, costs and disgorged profits. The agreement
also prohibits the firm from trading in or acquiring any securities
or derivatives for five years.
The Allegations
Founded in 2017, CoinLaunch initially operated a platform
whereby members of the public could develop tokens on the Ethereum
blockchain. However, soon thereafter, the Oakville, Ontario-based
company shifted its business to providing a web-based service that
helped companies build, deploy and monetize end-to-end initial coin
offerings (ICOs).
