TechFlow reported that the U.S. Securities and Exchange Commission (SEC) has charged Quantstamp with conducting an unregistered crypto securities offering through its 2017 initial coin offering (ICO). According to legal documents, Quantstamp raised over $28 million by selling QSP tokens to approximately 5,000 investors. The company intended to use the ICO proceeds to develop a protocol on the Ethereum blockchain that would provide automated security audits for smart contracts.
Quantstamp has agreed to settle the charges without admitting or denying the SEC's findings, paying nearly $2.5 million in disgorgement and prejudgment interest, along with a $1 million civil penalty. According to the documents, the company’s automated smart contract security audit platform, launched in June 2019, is no longer operational.
