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Ontario Securities Commission (OSC) Files Lawsuit for $51M Dignity Token Asset Offering

2 mins
Updated by Ryan James
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In Brief

  • Ontario regulator filed lawsuit against James Hogg for selling unregistered securities.
  • US SEC also filed a lawsuit against Hogg over his promotion of DIG tokens.
  • The SEC has increased scrutiny of the 2017 ICO boom.
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The Ontario Securities Commission (OSC) has filed a lawsuit against Troy Richard James Hogg for selling unregistered securities in an ICO where he raised $51 million.

According to a press statement, the OSC alleged that Hogg and his companies, Cryptobontix Inc., Arbitrade Exchange Inc., and Arbitrade Ltd. promoted and sold Dignity tokens (fka Unity Ingot) between 2017 and 2019.

The regulator continued that Hogg promoted the tokens using false representations, including claiming that Gold Bullion supports the tokens in promotional materials.

Hogg also failed to file a prospectus for the token distribution and did not get the necessary registration for the trading activities.

Furthermore, it accuses Hogg and the affiliated corporate entities of defrauding investors by using a substantial part of the funds for unrelated purposes, such as buying real estate properties.

According to the statement of allegations, the OSC got the assistance of the US Securities and Exchange Commission for the case.

SEC also files lawsuit against Hogg

Meanwhile, the US SEC also filed a lawsuit against Hogg and other US residents for selling unregistered securities. It announced the charges filed at the United States District Court Southern District of Florida today.

According to the commission, The DIG token was pumped between May 2018 and January 2019 with “false and misleading” press releases and a press conference.

SEC targeting 2007 ICO boom players

The case against Hoggs makes another instance where securities regulators pursue cases against individuals and companies that promoted and sold tokens during the ICO boom of 2017.

Last month, the SEC filed a lawsuit against Ian Balina for promoting Sparkster SPRK tokens in 2018. Balina is a popular cryptocurrency promoter with his YouTube channel, Diary of Self-Made Man. He now runs a crypto investment research firm—token Metrics. 

The SEC is accusing him of selling unregistered securities and not disclosing that he indeed received funds for the tokens he was promoting.

Balina will fight SEC’s allegations

Balina has said he will be fighting all the allegations on behalf of the crypto community. According to him, the regulator’s complaints against him “is a big stretch on all counts.”

The crypto promoter is now asking the community to fund his defense against the regulator. He shared a Gofundme link and also requested crypto donations on Ethereum.

“Due to the costly and exhaustive process ahead, an Ian Balina Legal Offense Fund has been created to assist with the legal costs,” he tweeted.

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Oluwapelumi Adejumo
Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.