According to the SEC press release, ICO Rating was promoting certain blockchain-based digital asset securities without disclosing that it was receiving compensation from issuers for publicizing these offerings on its website and on social media. In fact, ICO Rating referred to itself as “a rating agency that issues independent analytical research” with a mission of helping “the market achieve the necessary standards of quality, transparency and reliability.” However, ICO Rating failed to inform potential investors that they were viewing a paid promotional product. As part of the SEC’s order, ICO Rating agreed to pay disgorgement and prejudgment interest of $106,998, and a civil penalty of $162,000.
The SEC press release is available here.
Disclaimer
While we are pleased to have you contact us by telephone, surface mail, electronic mail, or by facsimile transmission, contacting Kilpatrick Townsend & Stockton LLP or any of its attorneys does not create an attorney-client relationship. The formation of an attorney-client relationship requires consideration of multiple factors, including possible conflicts of interest. An attorney-client relationship is formed only when both you and the Firm have agreed to proceed with a defined engagement.
DO NOT CONVEY TO US ANY INFORMATION YOU REGARD AS CONFIDENTIAL UNTIL A FORMAL CLIENT-ATTORNEY RELATIONSHIP HAS BEEN ESTABLISHED.
If you do convey information, you recognize that we may review and disclose the information, and you agree that even if you regard the information as highly confidential and even if it is transmitted in a good faith effort to retain us, such a review does not preclude us from representing another client directly adverse to you, even in a matter where that information could be used against you.
