Block.one came to an agreement with the US Securities and Exchange Commission (SEC) to pay a fine of $ 24 million for violating securities laws during an ICO EOS project.

SEC orders blockchain company to pay $ 24 million penalty for unregistered ICO https://t.co/em95RbxWEQ

– SEC_News (@SEC_News) September 30, 2019

The agency indicated that the EOS token sale lasted almost a year after the publication of the report on the collapse of The DAO . The startup did not register the ICO as an offer of securities in accordance with federal law and did not achieve an exception.

The commission also concluded that Block.one did not provide ICO investors, including American citizens, with sufficient information.

The company agreed to a fine, but neither acknowledged nor denied the allegations.

https://t.co/LgcclYjBIb moves forward with “Neither Admit nor Deny” settlement with the US SEC. No token is required to be registered as a security. SEC grants https://t.co/LgcclYjBIb an important waiver for future business. https://t.co/mczOVvegVD

– block.one (@block_one_) September 30, 2019

Block.one clarified that the regulator’s claims relate to the sale of an ERC-20 token in the period from June 26, 2017 to June 1, 2018. This token has already been withdrawn from circulation.

The price of EOS rose by more than 10% against the background of an agreement with the SEC. The asset has become one of the growth leaders among the coins from the TOP-10 list by capitalization.

BlockchainJournal Data

Recall that during the ICO Block.one raised $ 4.2 billion. The penalty imposed is 0.14% of this amount.

This year, the company paid $ 30 million for a domain for the social network Voice.

Subscribe to BlockchainJournal news on Facebook !

The hacker stole 30,000 EOS ($ 110,000) thanks to a bug in the decentralized EOSPlay application. The cost of the attack was just over 300 EOS ($ 1000), reports CryptoSlate .

The attacker involved the DeFi service EOS REX , which allows leasing network resources (RAM, CPU) from other users. The hacker filled the blocks with his transactions, ensuring a constant victory in EOSPlay.

The incident has already commented on CTO of Block.one startup Dan Larimer, who is the creator of EOS.

“The network is working correctly. This is no different from incidents when attackers spam Ethereum and Bitcoin with high-commission transactions. The network is not frozen, there was simply no extra bandwidth. "

#EOS is operating correctly. This is no different than when attackers flood eth or bitcoin with high fee transaction spam. The network didn't freeze for token holders, there was just no extra bandwidth available for free use https://t.co/nZQmCTlXFa

– Daniel Larimer (@ bytemaster7) September 14, 2019

Some users have already criticized Larimer.

“In Bitcoin or Ethereum, you can still send a transaction if you set a sufficiently high commission. In this case, many did not have enough CPU to lease another CPU – for them, the network froze. "It works correctly" is not the best answer. "

The difference between this attack on EOS and a high fee spam on BTC or ETH is you can still pay more to send a transaction on BTC or ETH

Many EOS users did not have enough CPU to rent more CPU so it did freeze for them

“Operating correctly” is not the best response IMO

– Rob Finch (@finchify) September 15, 2019

Entrepreneur Jared Moore said the network was inaccessible to dApps and his wallet.

I agree with this but I also place heavy blame on B1 for guiding the community a solid 0% with this stuff.

The network wasn't usable for dApps or my wallet, so yes it did freeze it. Or will B1 help the EOS community out and publish guidelines for how to prevent REX-attacks? https://t.co/E5pw2O5SiV

– ᴊᴀʀᴇᴅ ᴍᴏᴏʀᴇ (@ MooreJared0) September 14, 2019

Another user reported an attack on EOS.

Something is happening with CPU on #EOS right now. We're under attack. Mayday

– rektkid (@rektkid_) September 13, 2019

Recall that from July to November 2018, hackers carried out 27 attacks on decentralized applications in EOS and stole 400 thousand EOS.

In the first quarter of this year, according to AnChain, 75% of transactions in dApps on EOS were made by bots.

Subscribe to BlockchainJournal news on Telegram: BlockchainJournal Feed – the entire news feed, BlockchainJournal – the most important news and polls.

The cryptocurrency division of the rating agency Weiss Ratings announced that it was forced to downgrade the EOS rating due to "serious problems" with the centralization of the project.

EOS DOWNGRADE: #EOS has been seriously downgraded by its technology score. Up closeup now! Just's It to #ADA to launch a truly Decentralized #PoS #blockchain . No pressure. #crypto #Cardano #BTC

– Weiss Ratings (@WeissRatings) June 7, 2019

Weiss Crypto Ratings also noted that the EOS event held last week in Washington, at which the Voice social network was presented, did not give any convincing answers that would help dispel doubts about the centralization of the project.

It is for this reason that the EOS technology score was “significantly reduced.”

At the same time, Weiss Crypto Ratings makes it clear that the main expectations are now connected with the Cardano project (ADA) – it is he, analysts say, who is able to offer a truly decentralized model based on the Proof-of-Stake (PoS) algorithm.

Recall that in March, Weiss Ratings presented a report on emerging trends in the digital asset market. In it, EOS, having received a rating of A, was named the main competitor of Ethereum for the status of technology, which will become the foundation of the new Internet.

At the same time, Cardano was awarded the B + rating and described as a project that “strives to ensure the most advanced functionality of smart contracts, monetary policy and management”.

During the presentation of the social network Voice, the EOS developers also stated that they are preparing other significant updates, including the second version of the EOSIO 2 protocol, as well as the EOS VM, a new network engine for working with blockchain applications. It is assumed that EOS VM will increase the speed of execution of smart contracts in the EOS blockchain by 12 times. In addition, security will be enhanced in EOSIO 2 and support for YubiKey devices will be added.

As for the Voice social network itself, then, as it became known later, to participate in it, users will have to undergo mandatory verification , for which the project is supposedly ready to even pay.

Follow BlockchainJournal on Twitter !