TOP > News > SEC Moves to Stop Calata-Led Krops ICO
July 30, 2018 Updated

The Securities and Exchange Commission (SEC) is stopping 3 Calata-led firms from selling KropCoins (or Krop Tokens) through an Initial Coin Offering (ICO).



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.

SEC Decision

“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.

KROPS

KROPS’ aim is to have your own “farm” without owning a farm. They also launched a KROP app where you can buy directly from farmers and it also has the ability for you to sell your crops and set your price. The Calata group launched an Initial Coin Offering and is currently selling Krops Coin at a discounted price of 0.00105 ETH or around $0.70 per coin. Currently, they already sold around two million tokens out of the proposed 6.4 million coins.
Sources: Rappler, Inquirer
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