New Jersey Stops Two ICOs
August 9, 2019 12:55 am
New Jersey Bureau of Securities has ordered two state-based Initial Coin Offerings (ICOs) to stop the operations. Zoptax and UNOcall have been issued with emergency orders by the New Jersey officials. Canadian and American regulators coordinated under the North American Securities Administrators Association (NASAA) and proposed the ban.
According to the report, both ICOs were offering fraudulent security openings. Zoptax was planning to raise between and $3.4 million for its Zoptax Coins and UNOcall was issuing tokens and investments in its staking protocol that offered daily interest returns between 0.18% – 0.88%.
The officials stated that the purpose behind the investments and misleading information was behind the ban. New Jersey Attorney General Gurbir S. Grewal included that market rules apply to all businesses, regardless of the medium they exist on.
The official said:
“[The] Bureau of Securities stands ready to enforce our investor protection laws in cases involving initial coin offerings and cryptocurrency-related investment schemes. As innovation in the online cryptocurrency-related investment market continues, market players need to understand that the rules still apply to them.”
Operation Cryptosweep has 85 pending cases, 330 queries, and eight enforcement actions from January 2019. Zoptax and UNOcall are also under these lists.