Block.one Settlement with SEC

Yes, you heard it right -  EOS may have raised ~$4 billion via unlawful securities offering, but they only had to pay $24 million in fines  You might be wondering: if they did something wrong, why they paid so little, and if they did not do anything wrong, why did they agree to pay at all, right?

A number of ICO projects asked me - if Block.one was not a US entity, if their T&Cs clearly stated that US residents are not eligible to participate, and if they blocked IP addresses - does it mean, every single ICO is now in danger?

I personally believe that the following factors made EOS vulnerable:

• their size,
• their obvious US presence (US-based employees and team members, advertising billboards at TimeSquare, marketing activities at US-based conferences... followed by creation of the US-based legal entity),
• clear intention to focus and be present at the US market.

If you look at the settlement documents signed by the Block.one, it's clear that in exchange for their settlement, they received certain rights for their token to be offered to qualified US investors, furthermore, Block.one can continue (legally) fundraising in the US, if they wish to do so. To me, it means that the fine (=settlement) was not for the past wrongdoings, but rather it was a payment to secure fresh start. In essence, they paid for being able to move forward into the future. The price of the EOS token increased by ~15% after the announcement went out 

Hopefully, you see now, how this is a good precedent for the industry.