Two Nevada men have reached an agreement with the Securities and Exchange Commission of the United States. The settlement is in regards to a lawsuit by the SEC which alleges that the men sold unregulated stock in UBI Blockchain Internet Ltd., a company which claimed to be developing blockchain technology. Financial news website Bloomberg was the first to break the news. T.J. Jesky and Mark F. DeStefano partnered with the company in late 2017. They were able to obtain more than 70,000 restricted shares of stock which they were allowed to sell at a price of $3.70 per share. The SEC claimed that Jesky and DeStefano illegally marketed the stock to investors at prices ranging between $21.12 and $48.40 per share. The sales, occurring between December 2017 and January 2018 netted the two men $1.4 million. Under the terms of the settlement, Jesky and DeStefano will be required to make full restitution. They must also pay an additional $188,682 in penalties levied by the SEC. Neither man will be required to make an admission of guilt. UBI Blockchain Internet Ltd. began to see unusual market activity with its stock last January. The irregularities triggered an investigation by the SEC whereupon the illegal sales were discovered. The company, based in Hong Kong, is said to have a market capitalization of $358 million. The news of the settlement comes as ICOs for new digital tokens face increased scrutiny. Regulators within the SEC and other financial agencies are concerned that investors are being scammed. The concern has become so great that Internet giants like Facebook and Google have banned advertisements for ICOs. The cryptocurrency market has initially shown little reaction to the lawsuit settlement. Bitcoin and other digital assets continue to hold steady after a substantial loss in the first half of 2018.