SEC Fines ShipChain $2 Million for Unregistered Initial Coin Offering

​The Securities and Exchange Commission (SEC) announced that it has ordered ShipChain, a company involved in the shipping and logistics industry, to pay a civil monetary penalty in the amount of $2,050,000 for its unregistered initial coin offering.

In order to raise money to fund the development of its platform, ShipChain offered and sold SHIP tokens in an ICO without having a registration statement filed or in effect with the Commission or qualifying for exemption from registration with the commission, raising approximately $27.6 million.

Furthermore, the company promoted its company and the SHIP token ICO through various media, including on its website and through blog posts, social media posts, online videos, presentations, and online discussion boards.

The SEC is ordering ShipChain to transfer all SHIP tokens in its possession or control, including within the control of the company's directors, to the commission within 10 days of receiving notice of the appointment.

In addition, the company has to take steps to convey this order to digital asset trading platforms that, to its knowledge, offer trading of SHIP tokens and request the removal of SHIP tokens from the platforms. It'll also have to pay a $2,050,000 penalty to the regulator.