New Jersey Issues Cease-and-Desist to Crypto Investment Firm
TAGS: Regulation | New Jersey | cease-and-desist
New Jersey regulators have sent a cease-and-desist letter to an online cryptocurrency investment site, alleging that the company is fraudulently offering securities in the state.
The state's Bureau of Securities, along with the New Jersey Attorney General, said Friday morning that it was moving to prevent Bitstrade from making further offerings, which officials said failed to disclose information about its physical location, financial health or the names of its senior employees.
Bitstrade boasts on its website that it is "a registered United States company providing Private Banking service to the masses," though the address listed at the top is the same as Blue Razor, a domain registration company based in Scottsdale, Arizona. A message sent through Bitstrade's online message system was not immediately returned at press time.
According to the state government, Bitstrade is not currently registered to offer securities in the state.
Attorney General Gurbir Grewal said in a statement:
"The Bureau’s action today reinforces our commitment to protecting investors as they navigate the uncharted and largely unregulated domain of cryptocurrency-related investments. We want to make sure that investors tempted to cash in on the cryptocurrency rage aren't being lured into sending funds to an anonymous internet entity without knowing where the funds are going or how they'll be used."
Friday's developments continue a recent trend of state regulators issuing cease-and-desist letters to suspected cryptocurrency scams.
In the past month, regulators in Texas, for example, have sent such notices to a Hong Kong-based company behind an ICO and a crypto-lending platform akin to BitConnect, which collapsed last month and has since sparked several class-action lawsuits in the U.S.
New Jersey 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 news@coindesk.com.
RegulationNew Jerseycease-and-desist
Popular
Cloud Giant Xunlei Claims Blockchain Advance With 'ThunderChain'
Xunlei, the NASDAQ-listed cloud network provider, has launched its proprietary blockchain platform, despite ongoing class actions over an alleged initial coin offering (ICO).
At a press event in Be
Taiwan Eyes November Deadline for Bitcoin AML Regulation
Taiwan aims to formally regulate bitcoin under anti-money laundering (AML) rules before the end of the year.
According to the Taiwan Central News Agency, Chiu Tai-san, the country's minister of jus
Bitcoin Bull Trap? Not So, Says Lesser-Known Price Indicator
Is the reversal of a lesser-known bitcoin price indicator signaling a bull trap?
That's the question being asked by Twitter's more expert crypto analysts after bitcoin's rise to $8,500 this week, a
JPMorgan Trial Puts Debt Issuance on a Blockchain
JPMorgan Chase has partnered with National Bank of Canada and other major firms to trial a blockchain platform aimed to improve the debt issuance process.
As reported by Reuters, the investment ban
Stellar Run: XLM, IOTA, ADA Spike in Good Week for Altcoins
Alternative cryptocurrencies shone bright this week, as the wider cryptocurrency market saw continued resurgence.
The total market capitalization of all cryptocurrencies rose 25 percent week-on-wee
LedgerX's Bitcoin Derivatives Trading Is Up 7X Since Launch
Bitcoin trading platform LedgerX has seen a sevenfold increase in volume in the six months following its launch of cryptocurrency derivatives.
Chief operating officer Juthica Chou told CoinDesk tha
Likely New York Fed president says bitcoin 'doesn't pass the basic test' for a currency
The central banker expected to be the next head of the New York Fed doesn't think much of bitcoin and other cryptocurrencies. "Cryptocurrency doesn't pass the basic test of what a currency should
Bitcoin Pyramid Scheme Amassed $20 Million in South Korea
Two men from South Korea have been sentenced for creating a bitcoin pyramid scheme that swindled some 20 billion Korean won ($20 million) from investors.
On April 19, a judge from Seoul's Incheon D