Some cryptocurrency firms that were the target of the Securities and Exchange Commission Division of Enforcement may not be able to adhere to the agreed-upon settlements, according to WSJ.com.
Paragon and Airfox are both mentioned in the report. The two companies were deemed to have issued unregistered securities in an initial coin offering. Both companies were sanctioned by the SEC in November of 2018.
According to the report, Airfox has received an extension from the SEC to later December.
Paragon, on the other hand, may have missed its deadline to pay a mandated fine of $250,000 – the amount as Airfox. Both companies had to submit to a recission offer and it is not clear how much, if any, money will be returned to investors.
Of course, the problem comes down to money and whether or not any firm sanctioned by the SEC has sufficient resources to pay assessed fines or give money back to investors.
The WSJ report quotes Michael Dick, an attorney and former member of the SEC Division of Enforcement who said he was skeptical if these firms to abide by the mandated settlement:
“I looked at it then and look at it now as impractical, because for many projects they spent the money in accordance with what they told purchasers they would spend the money on – to build out the project. This kind of remedy really only works well when an issuer can pay back [the money].”
Of note, AirFox appears to be fully operational with active social media feeds. A recent Tweet claims that Airfox has doubled in size over the past year.
Our company has more than doubled in size over the past year. Meet the newest Airfox hires! https://t.co/92LFyQq9Xx #newhires #EmployeeEngagement #startup #careerdevelopment pic.twitter.com/IkcfbOnVzI
— Airfox (@_Airfox) November 12, 2019
Things have been quieter at Paragon. According to its website, Paragon began processing claims from investors on August 23, 2019, with the claims period expiring on November 21, 2019.