Odaily News: The U.S. Securities and Exchange Commission (SEC) has accused Quantstamp of conducting an unregistered securities offering during its initial coin offering (ICO) in 2017. According to legal documents, Quantstamp raised over $28 million by selling QSP tokens to approximately 5,000 investors. The documents also state that the company planned to use the proceeds from the ICO to develop a protocol on the Ethereum blockchain that would provide automated security audits for smart contracts.

Quantstamp has agreed to settle the charges without admitting or denying the SEC's findings. In addition to paying a civil penalty of $1 million, the company will also pay nearly $2.5 million in disgorgement and prejudgment interest.

The automated smart contract security audit platform built by the company in June 2019 is no longer operational.

At the time of writing, a spokesperson for Quantstamp had not immediately responded to a request for comment. (Blockworks)