NEW YORK (Reuters) – the U.S. blockchain investment firm Pantera Capital said on Thursday, roughly a quarter of this capital was invested in projects or digital assets, but does not comply with the U. S. securities regulations.
Pantera is the announcement highlights a growing concern in the cryptocurrency community about digital tokens issued in the last two years may have violated the U.S. securities laws.
The california-based Pantera is one of the largest investors in the digital currency.
In a monthly letter to subscribers and customers sent on Thursday, Pantera Chief Executive Officer Joey Krug said is against the rules projects will probably end up having to offer to buy back from the pawn to the sale price of the investors and will have to register as securities.
The company could not immediately be reached for comment.
In the middle of November, with the U. S. Securities and Exchange Commission announced that he is against two non-compatible first currency of the offer. The SEC concluded that the chips which are considered to be securities and sold to the AMERICAN non-accredited investors without having to rely on an exemption be considered to be incorrect.
For a token or digital currency to satisfy in the United States, it had sold only to accredited investors, or those with a net value of approximately $1 million, under Rule 506(c) of Regulation D of the Securities Act of 1933.
“Although we believe that the vast majority of the projects in our portfolio should not be affected, about 25 percent of the capital is invested in projects with liquid tokens sold to U.S. investors without the use of Regulation D or Regulation S,” Krug, who is also Pantera’s co-chief investment officer, said in the letter.
The website of the company is not able the amount of assets under management, but some market participants said Pantera manages $700 million of assets across a range of venture and cyrptocurrency funds.
Blockchain, which for the first time emerged as the system to enable cryptocurrency bitcoin is a shared database that is maintained by a network of computers that are connected to the internet.
“We are monitoring our positions for further relevant developments,” Krug said.
Pantera was founded in 2013 by the former head of macro trading and chief financial officer at hedge fund Tiger Management.
Reporting by Gertrude Chavez-Dreyfuss in New York; Editing by Matthew Lewis