The U.S. Securities and Exchange Commission (SEC) has won a $2.8 million settlement in a lawsuit over alleged price manipulation of a cryptocurrency token.
According to a press release from the SEC, the lawsuit was filed against a group of individuals and companies who were accused of manipulating the price of the cryptocurrency token, UBI Blockchain Internet Ltd. The SEC alleged that the defendants engaged in a scheme to inflate the price of UBI’s stock by making false and misleading statements about the company’s business operations and financial condition.
The SEC’s complaint alleged that the defendants made false and misleading statements in press releases, SEC filings, and other public statements about UBI’s purported business operations and partnerships. The SEC also alleged that the defendants engaged in manipulative trading practices, including coordinated buying and selling of UBI’s stock to create the appearance of market demand.
The defendants in the case agreed to settle the lawsuit without admitting or denying the allegations. As part of the settlement, they agreed to pay a total of $2.8 million in disgorgement, penalties, and interest.
Related:US Treasury Seeks to Tighten Nonbank Rules Following Banking Crisis
The SEC’s press release noted that the settlement is part of the agency’s ongoing efforts to combat fraud and manipulation in the cryptocurrency industry. The agency has previously taken action against a number of companies and individuals for alleged violations of securities laws related to cryptocurrencies and initial coin offerings (ICOs).
The settlement also serves as a reminder to investors to exercise caution when investing in cryptocurrencies and other digital assets. The SEC has warned that many ICOs and other cryptocurrency offerings may be fraudulent or otherwise violate securities laws, and has urged investors to thoroughly research any investment opportunity before putting their money at risk.
In conclusion, the SEC’s victory in this lawsuit is a significant step in its efforts to combat fraud and manipulation in the cryptocurrency industry. It also serves as a warning to investors to exercise caution when investing in cryptocurrencies and other digital assets, and to thoroughly research any investment opportunity before putting their money at risk.
