SEC Issues Cease And Desist Order Shutting Down ICO

Munchee Inc. ("Munchee"), a California-based restaurant review company, shut down its initial coin offering ("ICO") and issued refunds to investors after the SEC issued a cease-and-desist order for failing to register the tokens as a security.

Munchee allegedly created and planned to sell 500 digital tokens ("MUN" or "MUN tokens") with the goal of raising $15 million in capital to advance business development efforts. Munchee represented that the MUN tokens would be used as payment for authoring food reviews and to purchase food at participating restaurants. Munchee also represented that the value of the tokens would increase as a result of the company's efforts to develop the MUN "ecosystem," and emphasized that MUN would be tradeable on secondary markets.