The SEC has launched an investigation into tZero's ICO

US regulators are investigating tZero's $250 million ICO for possible violations of federal securities laws.

The SEC's enforcement division in February asked Overstock to voluntarily produce documents related to its subsidiary tZero's ICO structure. The company is currently in the process of gathering information and documents necessary to respond to this request and intends to cooperate with the commission's investigation.

The US Securities and Exchange Commission (SEC) is suspicious of simple agreements for futures tokens (SAFT), as it believes that these agreements are used to evade securities laws.

tZero's ICO based on simple agreements for future capital (SAFE), the investment vehicle from which SAFT was developed, is being pursued to raise $250 million to create a security token exchange. The company said the tokens will be both a coin and a security, as investors can either use them to receive discounts on platform fees or hold them to receive a share of tZero's profits.

tZero filed an offering memorandum with the SEC on March 1, 2018, superseding its previous memorandum. In the new memo, the company is giving early investors the opportunity to cancel their SAFE and receive a full refund, although they only have five business days to exercise their rights of withdrawal and refund.

Overstock said that the initiation of such an investigation does not mean that the SEC has concluded that the law was violated or that any person or company is at fault. 

According to https://www.ccn.com