Website Operator Settles SEC Charges For Unlawfully Touting Digital Assets

An operator of a website that listed and profiled offerings of digital asset securities settled SEC charges for failing to disclose compensation the operator received from the issuers of the digital asset securities.

In the Order, the SEC stated that the operator earned revenue from the website by selling marketing packages to token issuers, but failed to disclose to visitors of the website (i) which token issuers paid for, (ii) how much such issuers paid for those promotions and (iii) the specific platform content and publicity issuers had purchased. The SEC also found that details of the marketing packages the website offered were not accessible on the platform and were only disclosed in response to token issuers' inquiries. As a result of its findings, the SEC determined that the operator violated Section 17(b) ("Use of Interstate Commerce for Purpose of Offering for Sale") of the Securities Act.