

Oh boy! Here comes the SEC, but is this really bad that they are starting to investigate ICOs? I think it's good, not saying that OVERSTOCK has done anything wrong with theirs, but just in general there's a ton of scams out there. The SEC just wants to do their job and make sure no federal Securities laws are broken. I'm posting some quotes and clippings from the CCN article below:

Before we get into Overstock and the articles here's some info on what Tzero is..



TZero, at its core, is a SEC-regulated alternative trading system (ATS). Rather than depending on broker dealers to buy and sell securities, tZero works, in theory, like money sender Transferwise by matching buyers and sellers in a dark pool. The goal is to create an alternative to the NASDAQ with a ledger that is open, transparent, and immutable. Here's an article posted about it from Tech Crunch in DEC tZero



From the CCN article

The e-commerce company, which has acquired a growing portfolio of blockchain startups over the past few years, made this disclosure in a document dated March 1 and filed with the SEC.

The filing stated that the SEC’s enforcement division contacted Overstock in February and asked them to voluntarily hand over documents related to the structure of the tZero ICO. The company said that it is currently in the process of responding to this request and intends to cooperate with the agency during the investigation.

From the filing:

“While the SEC is trying to determine whether there have been any violations of the federal securities laws, the investigation does not mean that the SEC has concluded that anyone has violated the law. Also, the investigation does not mean that the SEC has a negative opinion of any person, entity, or security.”

Overstock has conducted the tZero ICO under a simple agreement for future equity (SAFE) — the investment instrument from which the SAFT was derived — aiming to raise $250 million to develop an SEC- and FINRA-compliant security token exchange.

The company has said that tokens will bear characteristics of both a utility and a security, as investors can either use them to receive discounts on platform trading fees or hold them to receive a portion of tZero’s profits.

I guess time will tell what happens with this filling and future SEC probing with other ICOs. We all knew this was coming... Enjoy the Knowledge!

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