New Jersey regulator issues order to stop cryptocurrency business “Bitcoiin”
The emergency order aims to stop Bitcoiin, an online cryptocurrency-related investment entity, from fraudulently offering unregistered securities in the state.
There has been more action by US authorities to halt the activities of illicit cryptocurrency businesses. On Wednesday, March 7, 2018, Attorney General Gurbir S. Grewal and the Division of Consumer Affairs announced that the Bureau of Securities issued an emergency order to stop Bitcoiin (no, this is not a typo – Ed.), an online cryptocurrency investment entity, from offering unregistered securities in the state.
In the Summary Cease and Desist Order, effective immediately, the Bureau finds that Bitcoiin also known as Bitocoiin B2G, is violating the State’s Uniform Securities Law by offering investors unregistered securities in its Initial Coin Offering (ICO) of its own cryptocurrency – known as Bitcoiin 2nd Generation, Bitcoiin 2Gen, or B2G – and in its “Bitcoiin Staking Program.”
The Bureau also found that Bitcoiin violated the law by failing to disclose key material facts to prospective investors, including the identities of its principals, the physical address of its business, and the risks associated with the Bitcoiin investments.
Bitcoiin also failed to disclose key information about its “brand ambassador,” a known movie and television actor, including whether he owns any Bitcoiin coins, the Bureau found. The entity does not disclose what expertise, if any, the celebrity has to ensure that the investment is appropriate and in compliance with federal and state securities laws. Also, there are no disclosures regarding the nature, scope, and amount of compensation paid by Bitcoiin for the celebrity’s promotion of Bitcoiin 2Gen.
The latest action against unlawful cryptocurrency schemes in New Jersey happens after in February this year the New Jersey Bureau of Securities issued an emergency order to stop Bitstrade, an online cryptocurrency-related investment entity, from fraudulently offering unregistered securities in New Jersey. The Bureau said that Bitstrade was violating the State’s Uniform Securities Law by offering investors an unregistered security in the form of an investment pool. The company promoted the investment by claiming guaranteed returns of up to 10% which accrue daily on investor funds. The Bureau noted that Bitstrade is not registered to sell securities in New Jersey.
