2025’s headline ICO-related actions include the SEC’s May 20 lawsuit against Unicoin over a $100M raise and “rights certificates,” the SEC’s January complaint against Nova Labs tied to Helium’s token distribution model, and the August 8 wrap-up of the SEC’s long-running Ripple case with a $125M penalty. Meanwhile, Terraform’s multibillion-dollar settlement stands, and Terra co-founder Do Kwon just pleaded guilty in New York on August 12, 2025.
What counts as “ICO company” in 2025
“ICO” has broadened from classic 2017 token sales to include offers of token rights or similar instruments that regulators still treat as securities if buyers reasonably expect profits from the promoter’s efforts. U.S. authorities continue to apply the Howey test and remind markets that tokenized instruments are still securities when they fit that definition.
Case 1 — SEC v. Unicoin (filed May 20, 2025)
The SEC sued Unicoin and executives in federal court, alleging they raised over $100M through misleading statements, including calling tokens or “Unicoin Rights Certificates” “SEC-compliant” or “registered,” and touting questionable asset backing. The complaint seeks injunctions, disgorgement and penalties. Coverage and the agency’s filings provide the core details and exhibits.
Case 2 — SEC v. Nova Labs (Helium) (filed Jan 17, 2025)
In a detailed complaint, the SEC alleges Nova Labs structured sales of Helium “Hotspot” devices as a “cheat for an ICO,” distributing HNT and related tokens and creating expectations of profit from Nova Labs’ efforts. The agency seeks injunctive relief, disgorgement and civil penalties. This case spotlights how offering structures beyond a traditional ICO can still be charged as unregistered securities offerings.
Case 3 — Ripple case formally concludes (Aug 8, 2025)
After years of litigation, Reuters reports the SEC ended its case while a $125M civil penalty and an injunction on certain institutional sales remain in place under Judge Analisa Torres’ orders. The decision marks a final chapter in one of crypto’s highest-profile enforcement actions.
Case 4 — Terraform Labs settlement and criminal follow-on (2024–2025)
On June 12, 2024 the SEC announced a civil settlement with Terraform Labs totaling roughly $4.47B after a jury found liability for fraud over the TerraUSD/LUNA collapse. In a separate criminal matter, Terra co-founder Do Kwon pleaded guilty in Manhattan on August 12, 2025, admitting to misleading investors. These developments continue to ripple through token-launch risk analyses.
State actions touching ICO issues
States are active too. Oregon’s attorney general sued Coinbase in April 2025 under state securities law; while the defendant is an exchange (not an ICO issuer), the complaint discusses tokens originally launched via ICOs and alleges sales of unregistered securities to residents. It’s a reminder that state laws can extend enforcement beyond federal actions.
Class-action pulse check
Stanford’s Securities Class Action Clearinghouse shows crypto-related securities class actions continuing into 2025, with the latest filing listed July 25, 2025 and multiple 2025 cases involving tokens and NFTs. This private litigation backdrop often runs in parallel with government enforcement.
What these cases mean for founders and investors
- Registration and disclosures still rule: labeling something as a “rights certificate,” “utility token,” or using interim instruments doesn’t avoid securities law when economic reality says otherwise.
- “Alternative” distribution models are in scope: device-based mining or other workarounds can be charged if marketed as investment schemes tied to promoter efforts.
- Outcomes can diverge: some matters end in massive settlements or pleas (Terraform/Kwon), others close with narrower penalties (Ripple), but all reinforce that investor-protection statutes apply to token fundraising.
Practical checklist (non-legal advice)
- Map the instrument: equity, debt, token, or right-to-future-token—then analyze if it’s a security under Howey. Keep contemporaneous memos.
- If in doubt, register or fit into an exemption; avoid public “compliance” claims unless you can substantiate them with filings.
- Marketing discipline: scrub websites, decks and social posts for profit-expectation language.
- Governance and controls: track proceeds, escrow mechanics, and use of funds; keep audit trails.
- State exposure: check blue-sky rules if you touch U.S. residents; enforcement isn’t only federal.
FAQs
Are “rights certificates” or SAFT-style promises safer than a direct ICO?
Not necessarily. If buyers fund a venture expecting profits from the team’s efforts, regulators can treat those rights as securities and pursue unregistered-offering claims.
Does distributing tokens via hardware or mining avoid securities laws?
No. The SEC’s Nova Labs complaint alleges a device-based distribution still amounted to an unregistered securities offering given the overall scheme and marketing.
Is the Ripple case really over?
Yes—per Reuters on August 8, 2025, the SEC ended its case, with a $125M penalty and an injunction on certain institutional sales left in place.
What’s the latest on Terraform and Do Kwon?
Terraform reached a multi-billion-dollar SEC settlement in June 2024, and Do Kwon pleaded guilty in U.S. court on August 12, 2025.
