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A blockchain firm has agreed to pay US$24 million to settle allegations with U.S. regulators that it violated securities rules with an unregistered initial coin offering (ICO).

The U.S. Securities and Exchange Commission (SEC) settled charges against the company, Block.one, which raised several billion dollars worth of digital assets through an ICO.

“Block.one did not register its ICO as a securities offering pursuant to the federal securities laws, nor did it qualify for or seek an exemption from the registration requirements,” the SEC said.

The company consented to the order without admitting or denying the SEC’s findings.

The regulator ruled that the company violated federal securities laws and ordered it to pay a US$24 million penalty.

“Companies that offer or sell securities to U.S. investors must comply with the securities laws, irrespective of the industry they operate in or the labels they place on the investment products they offer,” said Stephanie Avakian, co-director of the SEC’s division of enforcement.

“We are excited to resolve these discussions with the SEC and are committed to ongoing collaboration with regulators and policy makers as the world continues to develop more clarity around compliance frameworks for digital assets,” the company said in a statement.