SEC Settles With Hydro Protocol Over Unlicensed Security Token Sale
The US Securities and Exchange Commission (SEC) has finalized a settlement with Hydo Protocol and its associated parties. The protocol had earlier failed to register their security token sale under the US Regulations.
We have learned that SEC has given a favorable settlement to Hydo Protocol and its associated parties. According to the official filing, the respondents had offered and sold securities in the form of Hydro tokens without registering them with the SEC.
The ruling also mentioned that the respondents had no intention to deceive investors, but they also breached their obligations by selling unregistered securities. They were alleged of engaging in an unregistered security token offering which was considered a violation of Section 5(a) of the 1933 Securities Act.
Consequently, Hydo Protocol has agreed to compensate investors for any losses incurred due to their actions. Furthermore, Hydro Protocol has promised not to violate any provisions related to security regulations ever again as part of their settlement agreement with SEC.
We are also informed that Hydrop is registered with FinCEN as Money Services Business (MSB). They have also implemented various governance and compliance procedures as per FINRA’s requirements, which means it will not be violating any security regulations in the future.