According to the official press release published on January 21st, SEC charges yet another ICO for fraudulent behavior. This time, it is Opporty International, Inc. and its founder, Sergii “Sergey” Grybniak, who will pay a visit to court. The official complaint states that by proclaiming the token offering “100% SEC compliant”, Grybniak deceived 200 investors. The SEC claims that this kind of deception enabled Opporty to illegally raise $600,000 by selling their OPP tokens.
SEC Also Charges Opporty for Other Decepticons
The SEC doesn’t stop there as the commission claims that this isn’t the only Opporty’s illegal activity. According to further accusations, Opporty was misappropriating unapproved and unauthorized third-party content. The commission claims that, by doing so, the crypto startup made a false impression of user-created content.
Opporty, allegedly, also falsely proclaimed the partnership with thousands of “verified providers”. These entities should have been using the platform for their business. However, the SEC states that none of the mentioned businesses agreed to use Opporty. Moreover, Opporty’s claimed to have more than 17 million enterprises in the database. Yet, it turns out that the whole “database” was, in fact, a third-party catalog. According to the SEC, Opporty’s claims of a partnership with a “major software company” were also misleading as there is no evidence that the startup has such connections.
The Long List of Injunctions
The SEC’s injunctions proposal is long and states that the commission is looking for the following sanctions:
- Conduct-based injunctions prohibiting the offering of digital or other securities.
- Disgorgement plus interest.
- Civil penalties against Grybniak and Opporty.
- Officer-and-director bar against Grybniak.
Since Grybniak is also an owner of Clever Solution Inc., the SEC named the company as a relief defendant.
This isn’t the first time that CoinSyncom reports about SEC’s actions against cryptocurrency-related companies defrauding investors. As it seems, the US government is looking to regulate the crypto market. Therefore, we can expect many similar charges dealing with specific cases dating back to the ICO hype of 2017.