Block.one, the blockchain firm that raised a record-breaking $4 billion in an initial coin offering last year, today agreed to pay a $24 million fine in a settlement with the U.S. Securities and Exchange Commission over having run two ICOs without registration.

According to the SEC, Block.one’s two ICOs, the first in July 2017 that raised $185 million and the followup $4 billion raise in May 2018 were not registered as they should have been.

The SEC’s biggest gripe is that despite being based in Hong Kong, Block.one allowed U.S. investors to participate in its ICO.

“Companies that offer or sell securities to U.S. investors must comply with the securities laws, irrespective of the industry they operate in or the labels they place on the investment products they offer,” the SEC said. “Block.one did not provide ICO investors the information they were entitled to as participants in a securities offering.”

In a separate statement, Block.one noted that it neither admitted nor denied the SEC’s claims under the terms of the settlement. As part of the settlement, Block.one added that the SEC “granted Block.one an important waiver so that Block.one will not be subject to certain ongoing restrictions that would usually apply with settlements of this type.” In short, tokens issued by Block.one have no restrictions placed on them.

The settlement is a positive for the company amid a long and growing roster of litigation targeted at companies that have gone down the ICO path. Recent cases include Kik, which was forced to shut down its core messaging service Sept. 23 thanks to SEC litigation, and ICOBox, a company that provides ICO services to other companies that was sued by the SEC Sept. 19.

Image: Block.one