WASHINGTON, D.C. - August 17, 2026 - (KOREWIRE) - The Crowdfunding Professional Association (CfPA) is informing the regulated investment crowdfunding community of a civil enforcement action filed by the U.S. Securities and Exchange Commission against Netcapital Inc. and certain members of its management team.
The SEC announced the action on August 11, 2026, after filing its complaint in federal district court in Massachusetts on August 10, 2026. The Commission's Litigation Release and complaint provide details regarding the allegations and are available directly from the SEC:
SEC Litigation Release:
https://www.sec.gov/enforcement-litigation/litigation-releases/lr-26607
SEC Complaint:
https://www.sec.gov/files/litigation/complaints/2026/comp26607.pdf
Regulated investment crowdfunding depends on the confidence of investors, issuers, intermediaries, regulators, and other market participants. Funding portals and broker-dealers play a critical role as intermediaries between issuers and investors. The viability of investment crowdfunding depends on these intermediaries being held to high standards, and allegations that an industry participant engaged in fraudulent conduct are deeply concerning.
CfPA has long advocated for transparency, accountability, and responsible practices in the regulated investment crowdfunding industry and will continue to do so.
The allegations contained in the SEC's complaint have not been adjudicated. CfPA will continue to monitor this proceeding and share material developments as they become available.
About the Crowdfunding Professional Association
The Crowdfunding Professional Association (CfPA) is a 501(c)(6) nonprofit trade association dedicated to fostering the growth of the regulated investment crowdfunding economy. CfPA supports issuers, investors, regulated intermediaries, and crowdfunding professionals through education, advocacy, industry engagement, and policy work. CfPA advocates for responsible growth of regulated investment crowdfunding, including Regulation Crowdfunding, Regulation A, intrastate crowdfunding, and related frameworks that expand access to private-market investment opportunities under established regulatory structures.
CfPA will convene journalists, policymakers, entrepreneurs, investors, and industry leaders at the annual Regulated Investment Crowdfunding Summit, October 20-21, 2026, in Washington, D.C. Registration is available at https://ricsummit.org.
Learn more at https://CfPA.org, https://www.crowdfundingecosystem.com, or join as a member at https://cfpa.org/joinus.
