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Laxman Pai, Opalesque Asia: The U.S Securities and Exchange Commission (SEC) said a digital asset hedge fund that called itself as the "first regulated crypto asset fund in the United States" was unregistered.
The watchdog issued a cease-and-desist order and $200,000 fine to Crypto Asset Management (CAM) and its founder, Timothy Enneking.
The SEC action said Crypto Asset Management raised more than $3.6 million while making that false assertion.
According to the SEC statement, by engaging in an unregistered non-exempt public offering and investing more than 40% of the fund's assets in digital asset securities, CAM caused the fund to operate as an unregistered investment company.
After being contacted by the SEC staff, CAM ceased its public offering and offered buy backs to affected investors.
"Hedge funds seeking to ride the digital asset wave continue to proliferate," said C. Dabney O'Riordan, Co-Chief of the Asset Management Unit. "Investment advisers must be sure that the funds they offer adhere to the applicable registration obligations and must accurately represent their funds' regulatory status to investors."
CAM and Enneking agreed to the SEC's cease-and-desist order and censure without admitting or denying the findings against them, and agreed to pay a penalty of $200,000.
The SEC's investigation was conducted by Ranah L. Esmaili and supervised by Adam S. Aderton of the Asset Management Unit....................... To view our full article Click here
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