In a settlement announced this week, the Securities and Exchange Commission (SEC) ordered EOS developer Block.one to pay a $24 million penalty for conducting an unregistered securities offering related to the company's initial coin offering (ICO). The SEC order explains that the company stated it would use the money raised to develop the EOS platform and continued to engage in the ICO well after the SEC's DAO Report was released. The order notes that the company raised several billion dollars' worth of assets globally, including from U.S. investors, and did not register its ICO as a securities offering or seek exemption from the registration requirement.

The SEC also announced a second settlement with lesser-known cryptocurrency startup Nebulous Inc. for its 2016 sale of SiaNotes (which the company later began referring to as "SiaFunds") to the public. The SiaNotes were sold to support the development of the Nebulous decentralized cloud storage network, Sia, with promises made to investors that future revenue generated from transactions on the network would provide returns over time. The company also promised investors the opportunity to convert SiaNotes to SiaStock upon Sia's network launch. Nebulous consented to a cease and desist order and agreed to pay disgorgement of $120,000, prejudgment interest of $24,601 and an $80,000 civil money penalty.

This week, the U.S. Department of Justice (DOJ) announced an indictment against Jon Barry Thompson, the principal of cryptocurrency escrow company Volantis Escrow Platform LLC. Thomson allegedly received a total of $7 million from two separate victim companies after making false statements in connection with bitcoin transactions. Thompson is being charged with two counts of commodities fraud and two counts of wire fraud and could be sentenced to 10 or more years in prison. The U.S. Commodity Futures Trading Commission (CFTC) also filed civil charges against Thompson in connection with the fraud.

Finally, this week the Securities Division of Missouri's Secretary of State issued a cease and desist order against unregistered firm Mavixbtc Limited for falsely claiming to be registered with the state authorities and fraudulently using the registration number of a registered investment agent. According to the press release, the company attempts to lure investors by offering up to 55% returns over the span of two months through its brokerage and investment advisory services.

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