The U.S. Securities and Exchange Commission announced Tuesday that it filed a cease-and-desist against cryptocurrency firm ShapeShift, alleging that it operated as an unregistered securities dealer.

“The crypto assets offered by ShapeShift included those that were offered and sold as investment contracts and, therefore, securities,” the SEC wrote in the Tuesday filing, citing a 1946 court case that brought forth the Howey test. 

The agency said it has determined to accept an offer from ShapeShift to settle the charges by paying a civil penalty of $275,000, on top of the agreement to keep away from any future violations of the securities regulation, according to the filing.

ShapeShift, founded by Erik Voorhees, previously operated out of Colorado from October 2017 to February 2020 …