Overstock.com Inc under scrutiny of SEC over its ICO and token sale activity

2 March 2018

OverstockActivity of Overstock.com, Inc, an American internet retailer, is under scrutiny of the U.S. Securities and Exchange Commission in connection with the company’s Initial Coin Offering and token sales, affecting the trading of the retailer’s shares and bringing their price down 10%.

Overstock reported in a filing provided this week, that it will be cooperating with the authorities over the investigation and it satisfied the SEC’s request for the documents. The company added that its ICO pre-sale was finalized with $100 raised during the pre-sale period. The company had initiated further stage of fundraising round.

Last October, Overstock announced the launch of its ICO campaign and explained that the whole process will be legally compliant with the rules established by the SEC using the Simple Agreement for Future Tokens.

In the wake of the ongoing investigation the stocks of Overstock dropped 4.4% during midday trading on Thursday to a $57.85 mark.

The retailer explained that the investigation does not involve any official charges brought by SEC, and that the agency is not incriminating anyone working at Overstock, or alleging that the company violated any law.

Earlier this week the Wall Street Journal posted a report that the Commission has launched a probe into a number of ICOs in the United States, issuing subpoenas to dozens of startups involved into the crowdsale of tokens within the framework of the agency’s efforts to dig deeply into the cryptocurrency industry.

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