The Securities and Exchange Commission (SEC) is stopping 3 Calata-led firms from selling KropCoins (or KropTokens) through an Initial Coin Offering (ICO).
After SEC officially released its advisory about ICO early this January, it issued a cease-and-desist order on Mr. Joseph Calata’s Black Cell Technology Incorporated, Black Sand Capital Incorporated, and Black Cell Technology Limited. All three were reported to be offering securities in the face of KropCoins and Krop Tokens without the license from SEC.
“Krops are selling or offering securities in the form of KropTokens and/or KropCoins to the public without the necessary license from the corporate regulator, which is a violation of the Securities Regulation Code. The continued public offering and sale of Krops Tokens and/or KropCoins without the required license from the Commission makes the public offering and selling a continuing illegal act which makes it imperative and necessary that a cease and desist order be immediately issued.” – Security and Exchange Commission
The three Calata-owned firms violated the Official Advisory about ICO on the following grounds:
“[securities] cannot be sold or offered to the public without a registration statement filed”
Although Krops is registered in Hong Kong, it is its offering of Initial Coin Offerings in the Philippines that got the eye of the regulators.