SEC Settles With Nebulous For Unregistered Offering of Sianotes in 2014

The U.S. Securities and Exchange Commission reaches a settlement with Nebulous, the firm behind the Sia decentralized cloud storage network.

The United States Securities and Exchange Commission (SEC) reached a settlement with Nebulous, the firm behind the Sia decentralized cloud storage network.

$225,000 in disgorgement and penalties

On Oct. 1 the SEC announced in a press release that it has settled the charges against the firm behind the Sia network in the form of a civil monetary penalty. Nebulous settled the charges without admitting or denying the findings.

According to the U.S. regulator, the Massachusetts-based blockchain business conducted an unregistered offering of Sianotes in 2014, for a total of $120,000, promising future revenue generated from transactions on the Sia network.

As part of the settlement, Nebulous agreed to pay approximately $225,000 in disgorgement and penalties.

Nebulous COO Zach Herbert reportedly said that:

“While disappointed that the SEC chose to pursue a steep penalty of almost double what we raised in our 2014 offering of Siafunds, especially compared to their lax handling of EOS, we view this settlement as highly positive for Sia. By choosing not to take action against Siacoins, we believe the SEC has validated Sia’s two-token model. We will continue to build and improve the Sia network at a rapid pace.”

SEC reaches $24 million settlement with Block.one

As Cointelegraph previously reported, that the SEC recently reached a settlement with EOS parent firm Block.one, to pay $24 million in penalties for conducting an unregistered initial coin offering (ICO).

Block.one raised the equivalent of billions of dollars but failed to register its ICO as a securities offering in agreement with U.S. federal securities laws, “nor did it qualify for or seek an exemption from the registration requirements,” the SEC stated.

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