The U.S. Securities and Exchange Commission (SEC) has settled with two Nevada men over charges that they illegally profited from sales of stock in a claimed blockchain company, according to an SEC release.

The SEC originally alleged on July 2 that attorney T.J. Jesky and his law firm's business affairs manager Mark DeStefano had made about $1.4 million by selling stock shares in UBI Blockchain Internet, a Hong Kong-based firm, between Dec. 26, 2017 and Jan. 5, 2018.

As CoinDesk reported at the time, the two Nevada men allegedly sold 72,000 restricted shares at prices ranging from $21.12 to about $50, even though the shares were supposed to be sold at the fixed price of $3.70, as stated in the registration statement.

Sales of UBI Blockchain's stock then ceased as the SEC suspended trading activities on Jan. 5, due to questions regarding the company's public filings and unusual market activities around its stock, including a price spike.

"Without admitting or denying" the accusations in the SEC's complaint, Jesky and DeStefano have now agreed in a New York District court to settle the case by returning $1.4 million of the allegedly illegal earnings and a $188,682 civil penalty. They have also agreed to "be subject to permanent injunctions" on future stock trading.

According to the SEC notice, the investigation is still ongoing.

SEC emblem image via Shutterstock