North Dakota Securities Regulator Bans Three ICOs
October 13, 2018 12:37 pm
North Dakota’s security watchdog is taking action against ICO projects which are operating illegally in the state. Karen Tyler, the commissioner of the North Dakota Securities Department, has issued cease orders on three ICOs. These ICOs are unregistered and potentially fraudulent.
The regulators’ team has recently published a Press Release to announce the cease order. The security watchdog has enforced a hold on Crystal Token, Life Cross Coin and Advertiza Holdings. These ICOs had placed fraudulent statements on their websites with claims of excessively high returns. Their sites also included insufficient disclosures and misrepresentation of facts.
The agency revealed that none of the ICOs are registered to offer securities in the state. Advertiza made a fake announcement that it is registered under the SEC. Life Cross Coin’s website is operated form a Berlin IP address. The website is also associated with ransomware, trojans, and identity fraud.
Tyler stated that utilization of the cryptocurrency ecosystem by financial criminals is a threat to the Main Street investors. She included that these ICOs are not registered under SEC to provide service in the state.
“In formulaic fashion, financial criminals are cashing in on the hype and excitement around blockchain, crypto assets, and ICOs investors.”