Money was reportedly exchanged for postings on the now-defunct ICO rating site.
Coinschedule demanded payment for listings
Coinschedule was a popular website between 2016 and 2019. It categorized and graded new cryptocurrencies, often known as Initial Coin Offerings (ICOs).
According to the SEC, Coinschedule misrepresented its affiliation with the ICO issuers. ICO issuers allegedly paid for listings on Coinschedule, even though its ICO listings and trust scores appeared to be generated by its proprietary algorithm.
Coinschedule did not disclose that it received money for listings, according to the SEC, which means it broke anti-touting rules.
Blotics, the firm that ran Coinschedule, will pay a punishment of just under $200,000, which includes $154,434 in penalties and $43,000 in disgorgement. However, it has promised to stop violating the law in the future and does not have to acknowledge or reject the findings.
Other Penalties for Promoters
The SEC often takes action against firms that sell unregistered securities such as ICO tokens, cryptocurrencies, and other unregistered securities.
Various others, on the other hand, have faced fines for ICO marketing without actually selling tokens.
Last October, John McAfee was charged with identical allegations for failing to disclose that he was compensated for promoting ICOs. Floyd Mayweather and Steven Seagal, among others, have faced similar fines for their crypto marketing efforts.