The Securities and Exchange Commission (SEC) issued a statement today noting that a final judgment against Sergii “Sergey” Grybniak and his blockchain marketplace Opporty International, had been entered by the US District Court, Eastern District of New York. The SEC was granted partial judgment on the case that alleged an unregistered initial coin offering (ICO).
The SEC filed charges in January 2020, claiming that Grybniak and his company raised $600,000 from around 200 investors during the sale of unregistered “digital asset securities” called “OPP Tokens.”
The SEC said at the time that Grybniak claimed the ICO was “SEC Compliant.”
The complaint also alleged that Grybniak and Opporty marketed the ICO by making material misrepresentations and omissions, including misrepresenting the nature of Opporty’s purported partnership with a major software company.
On September 24, 2024, the Court granted the Commission’s motion for partial summary judgment, finding Grybniak and Opporty had conducted an unregistered securities offering without a valid registration exemption.
The Court also rejected Grybniak and Opporty’s defenses, asserting reliance on counsel and stating that they lacked fair notice of the application of the federal securities laws to the ICO.
Without admitting or denying the SEC’s allegations, Grybniak and Opporty consented to the entry of the final judgment, which provides for permanent injunctive relief and for Gryrbniak to pay a civil money penalty of $100,000, imposed a conduct-based injunction against him, and ordered both Grybniak and Opporty to comply with various undertakings.
