Table of Contents
The Securities and Exchange Commission (SEC) has opened an inquiry into potential breaches of securities laws committed by James Hardy, the Chief Executive Officer of Nasgo. Recently, Hardy’s attorney disclosed that the SEC has opened an investigation into Nasgo, a blockchain startup that purports to provide a decentralized platform for companies to issue their own tokens and perform transactions. The company is being investigated because of the claims made by Nasgo. This page will present a summary of the claims that have been made against Nasgo and its Chief Executive Officer James Hardy, as well as the consequences of the investigation that has been conducted by the SEC.
A Brief Exposition of Nasgo
The blockchain platform known as Nasgo makes the claim that it can provide companies with a decentralized solution for the generation and administration of their own currencies. The platform makes it possible for companies to generate their own unique tokens, which can then be used to complete transactions and provide incentives to customers who remain loyal. In addition, Nasgo gives companies the ability to publish their tokens on a marketplace where they may be bought, sold, or traded.
James Hardy, the chief executive officer of Nasgo, is a prominent person in the blockchain business. James Hardy has participated in a number of blockchain initiatives, some of which include Loci, which is a blockchain-based patent search engine, and Cryptune, which is a payment processing system for cryptocurrencies.
Defendant Nasgo is accused of the following.
The claims that Nasgo violated securities laws have led to an inquiry against the firm by the Securities and Exchange Commission (SEC). While the precise claims have not yet been made public, it is quite probable that the SEC is looking into whether or not the tokens issued by Nasgo qualify as securities under the laws of the United States.
The term “security” may be used to refer to a wide variety of financial products, such as stocks, bonds, and investment contracts. This is because the definition of “security” is intentionally vague. The Securities and Exchange Commission (SEC) has historically held the view that many cryptocurrencies and tokens qualify as securities. This is particularly the case when cryptocurrencies and tokens are offered for sale through initial coin offerings (ICOs) and guarantee a return on investment for buyers.
If the SEC determines that Nasgo’s tokens are securities, then the company may be required to comply with securities laws. This may include registering the tokens with the SEC and providing investors with certain disclosures. If the SEC makes this determination, then Nasgo will be required to comply with securities laws. Infractions of these rules may result in financial fines in addition to other types of sanctions.

The Investigation by the SEC Has Potential Consequences
The investigation that the SEC is conducting into Nasgo will likely have substantial effects on the blockchain sector as a whole. If the Securities and Exchange Commission (SEC) concludes that Nasgo’s tokens are securities, this might pave the way for how other blockchain startups are regulated in the future.
A great number of blockchain startups have used initial coin offerings (ICOs), which entail the selling of tokens to investors, in order to acquire capital. If these tokens are determined to be securities, blockchain businesses may be compelled to comply with securities regulations. This may result in an increased regulatory burden for blockchain companies as well as a restriction on their capacity to acquire capital.
In addition, the investigation being conducted by the SEC has the potential to tarnish the reputations of Nasgo and James Hardy, two individuals who have been involved in the blockchain business for a number of years. If the charges are found to be true, then the corporation and the leaders of the company might be subject to fines as well as other types of punishments.
James Hardy and Nasgo have provided their response.
Both Nasgo and James Hardy have refrained from making any public statements on the inquiry being conducted by the SEC. On the other hand, the website of the firm has been modified to contain a disclaimer that states that the tokens issued by Nasgo are not securities and are not designed to be used for the purpose of making investments.
It is unclear at this time whether or not this disclaimer will be adequate to assuage the worries of the SEC. The Securities and Exchange Commission (SEC) has adopted the view that the classification of a financial instrument as a security is determined not by its name but by the nature of the instrument itself. As a result, just including a disclaimer may not be enough to get around securities legislation.
Conclusion
The Securities and Exchange Commission’s investigation into Nasgo and James Hardy is a noteworthy recent event in the blockchain business. If the Securities and Exchange Commission (SEC) concludes that Nasgo’s tokens are securities, this might pave the way for how other blockchain startups are regulated in the future. It is possible that Nasgo and James Hardy may be subject to fines and other types of sanctions as a consequence of this.
The regulatory risks that are involved with investing in cryptocurrencies and tokens should be brought to the attention of potential investors in blockchain enterprises. Companies operating in the blockchain space that participate in initial coin offerings (ICOs) or any other kind of fundraising activity should confer with legal counsel to verify that they are acting in accordance with applicable securities laws.
You may also like GB21 Review: This GainBitcoin Ponzi scheme is advertising mining contracts of $450,000.