SEC Wants to 'Know Everything' about $250 Million tZero ICO: Overstock CEO
The US Securities and Exchange Commission (SEC) wants to «know everything» about the $250 million tZero ICO.
SEC Wants to 'Know Everything' about $250 Million tZero ICO, Says Overstock
That's based on Overstock CEO Patrick Byrne, who told Bloomberg that the regulatory agency was not only asking «very broad questions» about the company's plans for the tzero and its blockchain subsidiaries generally but was also making detailed inquiries into particular details of the token sale, like how the company ensures ICO contributors are licensed.
Byrne, however, said that the company was «super compliant» and not worried about the investigation.
«They want to know everything about what we're doing in the world of ICOs and they would like to have a conversation,» said Byrne. «We're super compliant. This.»
Overstock disclosed that the SEC was probing the tZero ICO, which has raised $ 115 million from approximately 1,100 accredited investors and is expected to reach $ 250 million since CCN reported.
Byrne stressed that Overstock had provided documents voluntarily — suggesting that it was not one of the «dozens» of companies to get SEC subpoenas — and he lauded the bureau for stepping up its enforcement of the ICO ecosystem.
The SEC has expressed particular interest in the «simple agreements for future tokens» — more commonly known by the acronym SAFT — that ICO operators have used to accept contributions from accredited investors while also claiming an exemption from SEC registration requirements.
Overstock Shares Slide on Probe Disclosure
As the firm announced the same day that it was opening another round of the tZero ICO but although Byrne may claim to welcome the SEC's question, the timing of the disclosure of the probe couldn't have been much worse for Overstock.
Shares of the Salt Lake City-based e-commerce company slipped on news of the probe also, falling as much as 10 percent during intraday trading before closing at $57.75, 4.4 percent below their previous-day level.