The case

The US Securities and Exchange Commission (SEC) ordered another company for its fraud. This time, it is Tierion. The SEC sued the company for the violation of security laws. As per SEC, the company offered its TNT tokens without registration. This was during the initial coin offering (ICO).


Tierion is a Blockchain technology company. It got established in 2015. After that, it started as a SaaS (Software as a Service) company. It focuses on an application for creating Blockchain receipts by using Chainpoint protocol. The company marketed the application to various industries. The industries include healthcare, financial services, and many others. The company sold 350 million digital tokens for $25 million. The digital tokens are Tierion Network Tokens or TNT. The tokens got sold through “Token in July 2017.

The allegations

A cease and desist order got issued against the company. The commission ordered the company to refund all the tokens to its investors. The company raised $25 million by selling TNT tokens. As per the order, Tierion needs to refund all the funds to its investors. The company has to pay a fine of $250,000. Moreover, it can’t sell the tokens on the secondary market.
As per SEC, the digital tokens come under the category of securities. The registration of these securities with the SEC is a must. However, the company failed to register the tokens with the regulator. The US Securities and Exchange Commission (SEC) pointed out the following. Since 2015, Tierion is in business. In 2017, the tokens were on sale. At this point in time, the Tierion Network was still in the development stage. So, investors should have understood this. They were actually supporting the development of the Tierion Network. The money generated will go into continuous development.
The company agreed to the settlement with the SEC. However, Tierion didn’t agree or deny the allegations levied by the commission.

The investors

As per the order, the SEC declared the tokens as unregistered and denied for the future sale. Now, the tokens do not have any value. Hence, the company has to refund the money to its investors. So, the investors should approach the company for a refund within 60 days. The company has to return the actual principal. Along with that, it will also give interest on the principal amount. The same is applicable for all TNT holders also. The node operators received the tokens as compensation. They should return the tokens to Tierion for 0.01 cent plus interest.


Wayne Vaughan is the founder and CEO of Tierion. He said that the project will definitely go on in spite of the order summoned by the commission. The settlement allows the company to complete the retirement of TNT tokens. There will be no impact on Tierion’s products or open-source software. He also added that the company will move ahead without any heavy regulatory burden.
Recently, The US Securities and Exchange Commission started to target initial coin offerings. Similar allegations of securities law violations against companies are coming in to picture.
Kayla Turner
Kayla Turner

Kayla is an adept article writer with vast hands-on experience in cryptocurrency and technology. She is outgoing and always looking for new challenges to conquer. Over the years, she has gain massive traction online for writing stellar content on cryptocurrency and blockchain technology in a crispy and easy to understand style. When she is not writing for the web, she loves spending quality time with friends, colleagues, and her family indoors and outdoors. Be sure to check out his profile online for more invigorating articles.

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