How SEC’s Paragon Ruling Could Send Many Crypto ICOs to Bankruptcy

The recent clampdown on Paragon and AirFox ICOs could see several crypto projects being declared bankrupt. Per a CNN report, the two crypto projects were asked to pay a fine of $350,000 to the SEC and refund funds to investors who were participants in their token sales. Per the SEC official document, investors of ICOs which are considered as securities can sue the crypto projects for compensation if they register losses. Currently, if investors decide to file lawsuits against crypto projects for losses suffered in the bear market several crypto ICOs could go bankrupt.

Source: https://www.ccn.com/how-secs-paragon-ruling-could-send-many-crypto-icos-to-bankruptcy/