As it was reported by The Wall Street Journal, the Securities and Exchange Commission (SEC) forced the project management to suspend the initial coin offering, and even cancel the fund-raising completely. The reason for the closure of some ICOs is illegality of fund-raising which entrepreneurs are warned about by the SEC employees.
Taking control of the production of tokens even during project development became possible after increasing the number of the SEC employees. From now on, re-sold ICO coins will be banned and punished with legal litigation.
Basically, closed ICOs refer to the type of the so-called simple agreements for the sale of future tokens, which allow investors to have rights to obtain tokens before their official sale, and then either sell them or exchange for a share of the profits from the company conducting ICO.
The SEC believes that such agreements deal with a structure similar to securities, but strict rules are stipulated for this market.
Earlier this year, simple agreements were used during the conduct of the ICO of the popular Telegram messenger, but to date it is not known whether the SEC sent any requests to the company.