Cryptocurrency firm Mintage Mining reaches agreement with Texan authorities
Mintage Mining, BC Holdings and Investments, Social Membership Network Holding, Nui Social and their manager Darren Olayan agree to stop offering unregistered securities.
There has been some development in the regulatory action against Mintage Mining, BC Holdings and Investments, Social Membership Network Holding, Nui Social and their manager Darren Olayan. These entities were targeted by an Emergency Order issued by the Texas Securities Commissioner in July 2018.
On Thursday, February 21, 2019, an agreed order was entered in this case.
Let’s recall that the respondents Mintage Mining, BC Holdings and Investments, and NUI Social, offered investors two investment programs – the Hash Rate Unit Investment Program and the Open-Ended Unit Investment Program. They both were tied to mining of cryptocurrencies.
The regulator has found that the Hash Rate Unit Investment Program and the Open-Ended Unit Investment Program are “securities” as this term is defined by the Texas Securities Act. The respondents have violated the act by offering unregistered securities and by acting as securities dealers without having the necessary registrations.
The respondents have consented to the entry of an agreed order. The order covers all the entities apart from Wyatt McCullough and William Douglas Whetsell, who were also named in the emergency order from July 2018.
Under the agreed order, the respondents will have to cease and desist from offering for sale any security in Texas until the security is registered with the Securities Commissioner. The respondents will also have to cease and desist from acting as securities dealers or agents in Texas until the respondents are registered with the Securities Commissioner. The respondents are also ordered to pay a fine of $25,000.
The Texan authorities are keeping an eye on cryptocurrency-related violations and are taking action when necessary. In November 2018, for instance, the Securities Commissioner of the State of Texas issued an Emergency Cease & Desist Order against My Crypto Mine and Mark Steven Royer. The Securities Commissioner notes that the investments issued by My Crypto Mine are securities under Texan laws and that by offering unregistered securities the respondents are breaking the law. The respondents have been found to be engaging in fraud and to be deceiving the public. The respondents were ordered to cease and desist from the offering of sale of any securities in Texas and to cease and desist from acting as dealers or agents.