Erik Voorhees is beaten but unfazed after being charged by the Securities and Exchange Commission (SEC) for selling shares in his two companies without proper registration with federal government.
Yesterday, the SEC charged Voorhees over US$50,000 in penalties and reclaimed profits from the venture, which took place between 2012 and 2013. Voorhess clarified the situation on Reddit:
“I have entered into a settlement agreement with the SEC. With this matter resolved, I look forward to helping to build the Bitcoin industry and the future of finance.”
Plenty of support
The charges brought against Voorhees refer specifically to shares in two outfits, SatoshiDICE and FeedZeBirds, for which he allegedly solicited investors via social networks such as Facebook, as CoinDesk reports. The SEC’s verdict comes as a result of investigation into SatoshiDICE earlier this year.
Further to financial costs, Voorhees also agreed to a five-year freeze on his ability to offer Bitcoin securities. Since having sold SatoshiDICE to an undisclosed buyer last year for 126,315BTC, then worth US$11.5million, the SEC’s fine represents a comparatively insignificant sum, the Wall Street Journal notes.
Nevertheless, Voorhees was received as something of a martyr on Reddit, with simple vouches for solidarity receiving the most support from the community. Users also extensively referred to the size of the fine. “It's not the amount, it's the ratio and the consequences. He had to pay back all of his profits and more,” u/Bitcoin-CEO wrote.
The episode underlines a predictable solidifying of the SEC’s stance towards Bitcoin transactions, with Voorhees providing an opportunity for some tough reiteration. For Voorhees himself, however, it certainly seems that this is but a flash in the pan.