Karen Tyler, the Securities Commissioner of North Dakota in Fargo, recently issued cease and desist orders to 3 companies, namely; Bitconnect, Magma Foundation and Pension Rewards Platform. The orders were said to be issued against the companies because they were found to be involved in the promotion of unregistered and possible deceitful securities by conducting ICOs [Initial Coin Offering] in the state of North Dakota.
The orders came after the ICO task force of the North Dakota Security Department held an investigation under the instruction of their commissioner. The department was tasked to pinpoint ICOs and other digital asset-related investments that were a potential risk to the investors of North Dakota.
Cease and desist orders are documents issued to a business or an individual to ‘cease’ or stop their implied illicit activity and to ‘desist’ or not to restart the activity again. Furthermore, if said business or individual does not comply with the instructions issued by the concerned authority, it would lead to the company being sued.
According to various sources, the action taken against the companies is a part of an initiative known as ‘Operation Crypto Sweep’. The initiative is a regulated, multi-jurisdiction investigation and implementation effort that comprises of about 40 US and Canadian security regulators.
Recent reports saw Gerald Rome, the Securities Commissioner of Colorado issue a ‘cease and desist’ order to the Linda Healthcare Corporation, a Florida-based cryptocurrency firm along with its Founder Arturo Devesa. The order effectively stopped all ICO-related activities by the organization as the ICO was deemed an unregistered security.
This is not the first order that has been served to Bitconnect. Previously, regulatory authorities of Colorado, North Carolina, and Texas had accused the platform of unregistered activity and deceit.
Trade Satoshi, the only exchange that had Bitconnect’s cryptocurrency BCC on its platform, recently delisted the digital asset from their platform. This left Bitconnect devoid of any sort of backing from the cryptocurrency community. Despite all these actions, the Bitconnect website is still live, offering cryptocurrencies for ‘sale’ to the people residing in North Dakota.
The post Bitconnect [BCC] issued ‘cease and desist’ orders by US regulators, another hit for the ponzi scheme? appeared first on AMBCrypto.
Source: AMBcrypto
Original Post: Bitconnect [BCC] issued ‘cease and desist’ orders by US regulators, another hit for the ponzi scheme?
