WASHINGTON (dpa-AFX) - California-based restaurant review app firm Munchee halted its initial coin offering after being contacted by the U.S. Securities and Exchange Commission. The company, which selling digital tokens to investors to raise capital for its food review service, has agreed to an order in which the Commission found that its conduct constituted unregistered securities offers and sales.
The US regulator also warned consumers of the dangers of investing in crypto-currencies issued by firms.
Munchee refunded investor proceeds after the SEC intervened. Munchee was seeking $15 million in capital to improve an existing iPhone app centered on restaurant meal reviews and create an 'ecosystem' in which Munchee and others would buy and sell goods and services using the tokens.
Initial coin offerings let startups quickly raise capital by issuing virtual tokens to investors.
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