BitConnect's planned initial coin offering (ICO) has attracted another cease-and-desist letter from U.S. state regulators, marking the second time this month.
In a release dated Jan. 9, the regulators from the North Carolina Securities Division outlined the temporary cease-and-desist, stating that BitConnect hadn't registered to deal or sell securities in the Tar Heel State.
According to the release, the division determined that BitConnect had planned to sell unregistered securities in their initial coin offering (ICO), which was scheduled to launch on Jan. 10.
The release continued:
“The Temporary Order to Cease and Desist found that BitConnect was not registered as a dealer or salesman of securities in North Carolina and offered investments called the BitConnect Lending Program and the BitConnect Staking Program. The Temporary Order to Cease and Desist also found that BitConnect had omitted to disclose material facts when offering these investments in North Carolina.”
BitConnect has 30 days to respond, according to the temporary cease-and-desist notice. If the company fails to do so, the temporary order will become permanent, according to the release.
Last week, the Texas State Securities Board issued a similar statement regarding BitConnect, which some critics have accused of constituting a Ponzi scheme.
Like their counterparts in North Carolina, the Securities Board issued a temporary cease and desist order, stating that cryptocurrencies are "risky investments."
North Carolina image via Shutterstock
The leader in blockchain news, CoinDesk is an independent media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Have breaking news or a story tip to send to our journalists? Contact us at email@example.com.
Zedd, 3LAU and Big Sean: Tickets On Sale for First Blockchain Music Festival
Tickets for the first music festival set to be powered by blockchain technology are now on sale.
Scheduled for this fall, the Our Music Festival is launching its own virtual currency — the OMF toke
How Crypto Reacted to This Week's SEC Bitcoin ETF Delay
It was an expected result at an unexpected time.
The news broke on August 7 that the U.S. Securities and Exchange Commission (SEC) is kicking the can on its decision to approve or disapprove a prop
Microsoft Looks to Trusted Computing for Blockchain Security Boost
Two newly published patent applications from Microsoft suggest that the software giant is looking at the use of trusted execution environments, or TEEs, within its blockchain offerings.
Crypto Millionaire Lost 5,500 Bitcoins in Alleged Investment Scam
A 22-year-old cryptocurrency millionaire has lost more than 5,500 bitcoins in an alleged investment scam in Thailand – one that drew public attention due to the involvement of a local actor.
China's Communist Party Publishes Blockchain Tech 101
China's Communist Party is moving to make blockchain literacy the norm across public offices with the publication of an explainer for officials and members.
Released by the publishing house of the
Blockchain Social Network Minds Is Migrating to Ethereum for Launch
Blockchain-based social network Minds is migrating its platform to the ethereum network, the startup announced Monday.
After roughly four-and-a-half months on its Rinkeby test network, the startup
Bitcoin Trading Is Illegal in Saudi Arabia, Warn Watchdogs
A governmental committee comprised of Saudi Arabian regulators has issued a statement clarifying that cryptocurrency trading is illegal in the kingdom.
According to a statement issued Sunday, the s
Former S&P President Leads Seed Round for ICO Compliance Startup
Regtech and compliance startup iComply has just completed a seed funding round led by former Standard and Poor's president Deven Sharma.
The firm – which seeks to develop standard compliance tools