A Phone Call From SEC Pressures ICO Startup to Close Operations and Refund

Over the past few weeks, the topic of Initial Coin Offerings (ICO) and the latest SEC announcement has been a hot conversation. After raising billions this year, some people thought that the ICO environment was getting a bit out of hand, and the U.S. regulator seems to agree. Now a new token crowdfund, created by a startup called Protostarr has to cease operations because of a recent phone call with the regulatory agency. Protostarr raised roughly $45,000 worth of ether to build an earnings distribution D-App (Decentralized Application) during its ICO that started two weeks ago.  

“On August 24, 2017, we were contacted by the United States Security and Exchange Commission regarding the initial coin offering of Protostarr tokens to fund the development of our Ethereum decentralized application,” explains the startup’s recent announcement.

"After consultation with multiple lawyers, we have decided to cease further operations and refund Ethereum collected in our crowdsale that began on August 13, 2017."

Full story at http://bit.ly/2vF6PzO

Source: Bitcoin News

 

 

 

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