On March 21, 2022, the U.S. Securities and Exchange Commission (SEC) announced that it has accepted a settlement offer of $275,000 from ShapeShift AG, a Swiss-based blockchain company. ShapeShift was charged with conducting an unregistered securities offering of its digital asset, FOX tokens.
ShapeShift neither admitted nor denied the SEC’s findings but agreed to the settlement, including a cease-and-desist order. This is a typical practice in SEC settlements to avoid further legal complications.
The commission declared that ShapeShift’s FOX token distribution was a securities offering because it qualified as an “investment contract.” According to the SEC, ShapeShift failed to register its offering and thus is in violation of federal securities laws.
This settlement marks the latest effort by the SEC to oversee and regulate the cryptocurrency industry more closely. The agency aims to ensure that individuals and companies comply with rules and regulations designed to protect investors and maintain fair, orderly, and efficient markets.
