The federal investigation has led to accusations of Block.One being involved in practices related to "wash trading" during the initial 365 day EOS allocation period, with the purpose of artificially inflating the underlining token value.
- The saga never seems to end for the beleaguered company - even though Block.One has previously settled with the SEC in 2019, agreeing to pay a fine in excess of $24 Million, on the count of its unregistered "900 million digital asset/token" distribution.
- In an effort to distance itself from the legal responsability of being associated with the actual EOS token and maintain its position as the creator of the EOS.IO platform, Block.One has solicited to forfeit its digital assets, rather than covering the overdue taxes and supposed astronomical penalties which are yet to be disclosed:
Source: SEC ADMINISTRATIVE PROCEEDING File No. 3-19568
- EOS holders should examine the EOS gateway set up for this redistribution and check if they are eligible for a claim. So far, reports are coming in that most requests are being accepted, even from owners that had withdrawn their EOS from exchanges in order to use their wallet to sign the Proof of Ownership contract.
Apparently, Block.One is trying to downplay the whole incident and has set up a gateway in order to distribute their EOS without any mention of the SEC lawsuit... That's today's crypto business practices for you folks. Considering the circumstances, we hope that this event might at least be a win for the average EOS holder.
*This is an updating story, please check back later for more updates