Even Free Tokens Face Regulatory Heat as Coin Offerings Scrutinized

By Anonymous

SEC punishes company that didn’t sell any tokens, saying potential investors were misled about details of oil-drilling project

WASHINGTON—Securities regulators on Tuesday opened a new front in their campaign to crack down on fraud in the initial-coin-offering market by punishing a firm that didn’t sell any tokens.

The Securities and Exchange Commission said Tomahawk Exploration LLC and David Thompson Laurance tried to raise $5 million in 2017 by selling a token called “TOM,” short for the firm’s name.

When...