The Commission believes that the founders of the ICO were engaged in fictitious trading in order to artificially inflate the value of the EOS token. Block.One has previously settled one conflict with the SEC, agreeing to pay the regulator $24 million.
The US Securities and Exchange Commission (SEC) has accused the developers of the EOSIO blockchain protocol, Block.One, of market manipulation. According to the Coindesk portal, the regulator’s investigation showed that the company was engaged in a “wash trading” during the ICO of EOS tokens.
EOS placement has become the largest ICO in the history of the industry. Between 2017 and 2018, the Cayman Islands-registered company raised $4.2 billion from investors. The SEC believes that during the specified time period, Block.One was engaged in wash trading in order to artificially inflate the value of the target token.