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Fenwick’s Mike Dicke Talks SEC, Fundraising and Cryptocurrency Startups

November 15, 2019

Fenwick securities enforcement co-chair Michael Dicke spoke with the Wall Street Journal about the SEC’s efforts to settle enforcement cases brought against issuers of cryptocurrency tokens.

Some companies who the SEC alleged ran afoul of the securities laws have agreed to lesser fines in settlements with the SEC in exchange for bringing their ICOs under SEC oversight and offering refunds to investors, but several companies have missed deadlines to make these amends.

Formerly the head of enforcement for the SEC’s San Francisco office, Dicke told the Wall Street Journal he was skeptical that many crypto projects would be able to follow the SEC’s template for mending their financing missteps.

“I looked at it then and look at it now as impractical, because for many projects they spent the money in accordance with what they told purchasers they would spend the money on—to build out the project,” he said. “This kind of remedy really only works well when the issuer can pay back in full.”

The full article is available through the Wall Street Journal (subscription required).

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