The U.S. SEC accuses Quantstamp of conducting an unregistered securities offering in its ICO in 2017

ChainCatcher news, according to Blockworks, the U.S. Securities and Exchange Commission (SEC) has charged Quantstamp with conducting an unregistered crypto security during its initial coin offering (ICO) in 2017. According to legal documents, Quantstamp raised over $28 million by selling QSP tokens to approximately 5,000 investors. The company planned to use the ICO proceeds to develop a protocol on the Ethereum blockchain that would provide automated security audits for smart contracts.

Quantstamp agreed to settle the charges without admitting or denying the SEC's findings, paying a civil penalty of $1 million, along with nearly $2.5 million in illegal gains and pre-judgment interest.

According to the documents, the automated smart contract security auditing platform built by the company in June 2019 is no longer operational.