SEC shuts down restaurant review app Munchee's ICO
Munchee, a San Francisco-based restaurant meal review app, has halted its intial coin offering and refunded investors after the U.S. Securities and Exchange Commission warned that it was selling unregistered securities.
Why it matters: This is the latest in the SEC's crackdown on token sales.
Last week, it charged the organizer of PlexCoin's token sale with fraud, two months after also charging the organizer of two real estate-focused initial coin offerings with defrauding investors.
- The agency's crackdown has been expected since it issued a warning to the industry in July after concluding that the infamous DAO token sale violated securities laws.
Go deeper: Here's a series of tweets by Marco Santori, a Cooley lawyer specilizing in token sale contracts, about what went wrong with Munchee's ICO.