Cryptocurrencies
Crypto Hedge Fund Warns of Possible ICO Refunds After SEC Decision
- Pantera says 25% of ICO fund holdings could be impacted
- Being deemed a security could hinder development of projects
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Pantera Capital Management said about 25 percent of the blockchain and digital-currency projects that its ICO fund invested in could be found in violation of U.S. securities laws and may have to refund money to their backers.
The Menlo Park, California-based hedge fund said the projects may be at risk after the U.S. Securities and Exchange Commission’s Nov. 16 announcement that two startups that raised millions by issuing tokens to non-accredited investors didn’t comply with securities laws. One of the projects, Paragon Coin, has already announced it may have to pay back investors.