Blockchain enthusiast Alex Tapscott has reportedly been entitled to a fine, along with community services activities, regarding his settlement agreement with the Ontario Securities Commission (OSC).
Specifically, Tapscott – CEO of the blockchain-based firm NextBlock Global Limited – has been ordered to pay a $148,000 fine, together with conducting ethics sessions at 3 Canada-based business institutes, which will take place in the span of the next one and a half year (18 months), as some of the requirements for his public hearing with the OSC to go through. Tapscott will also have to publicize the topics he’ll choose in an open letter this week.
Previously, the OSC Staff of the Commission has accused Tapscott and NextBlock of providing “misleading” information during their presentation in a funding round, which reportedly helped them secure around $20 million from 113 “accredited investors”. Specifically, Tapscott allegedly used the images and information of various famous people in the crypto field, nominally Kathryn Haun, Vinny Lingham, and Karen Gifford, who haven’t decided to become a NextBlock advisor.
The Globe and Mail further reported that Tapscott is still able to operate his company normally for the time being, as is common procedures in the agreements reached in this type of settlements.
NextBlock also had to cover the associated fee and legal cost for the agreement, including $74,000 for the investigation, and $520,000 worth of fine.
According to IT World Canada, the leading Canadian news outlet for IT professionals, Tapscott has returned the initial investment of $20 million of debenture holders, plus an additional profit of $28 million from the investments. The CEO also voluntarily declined $3 million of the carried interest, or his share of the profits.
Answering IT World Canada, leading investors in NextBlock Global said that despite the fine of OSC, they would do business with Tapscott again.