PANews reported on July 12 that according to CoinDesk, the U.S. Securities and Exchange Commission (SEC) abandoned its three-year investigation into blockchain software developer Hiro Systems (formerly Blockstack), which raised $70 million through token sales between 2017 and 2019, according to a document on Friday.
“Based on the information currently available to us, we do not intend to recommend that the Commission pursue an enforcement action against Hiro Systems PBC (formerly Blockstack PBC),” the SEC’s enforcement division said in a letter to Hiro included in an attachment to Friday’s filing. The letter includes a stock warning that such a notice “should not be construed to indicate that the party is absolved of liability or that the staff’s investigation may not ultimately result in any action.”
Hiro provides developers with tools for building applications on Stacks, a layer 2 blockchain that complements Bitcoin. Stacks is the brainchild of crypto industry veteran Muneeb Ali, now CEO of Trust Machines, another builder of the ecosystem, and a member of Hiro’s board of directors.