ICO Rating is a website that produces cryptocurrency research about ICO’s in order to ensure quality, transparency and reliability. The SEC, however, announced today that the Russian website, ICO Rating has agreed to pay the sum of $268,998 to settle charges about failing to disclose the payments received from some companies to publish their ICO’s.
The SEC found that ICO Ratings was being paid by certain issuers but it wasn’t disclosed in their terms of service.
“The securities laws require promoters, including both people and entities, to disclose compensation they receive for touting investments so that potential investors are aware they are viewing a paid promotional item,”
said Melissa Hodgman, Associate Director of the SEC’s Enforcement Division.
This can certainly be a bit concerning for some people, it seems that the SEC and other regulators and lawmakers are taking a tough stance against crypto fraud, however, this should be good in the long term and will help clean up all the scams in the crypto market.
This is definitely not the first time the SEC has charged a crypto project or crypto related business that were promoting coins without any disclosure. Even Floyd Mayweather was charged by the SEC because he was promoting crypto projects.