Texas Commissioner files Emergency Termination on Bitconnect

Nishanth Shetty

January 6, 2018 9:52 am

Texas Commissioner files Emergency Termination on Bitconnect | Coindelite News
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Bitconnect News

The Commissioner of the Texas State Securities Board filed emergency termination in order to stop the investment programs offered by England-based cryptocurrency platform, BitConnect.

Travis J. Iles, Securities Commissioner, who filed the order says, Bitconnect’s allocation of its own token, Bitconnect Coins, as well as other cryptocurrency-related investment services falls under the classification of securities. Anyhow, Bitconnect failed to register as required under the Texas Securities Act and State Securities Board Rules and Regulations.

However, it is unregistered to sell securities in the states of Texas, the commission informed that the sales agents of Bitconnect were targetting Texas via internet advertising, social media campaigns, and marketplaces.

The regulatory actions come in response to BitConnect’spurpose to go through a token offering-based crowdfunding initiative, or Initial Coin Offerings (ICOs).

Bitconnect’s solicitation activities include claims that investors will receive annual returns in excess of 100 percent, according to the commissioner.

The Board’s official site wrote in a statement:

“Bitconnect has disclosed virtually nothing about its principals, financial condition, or strategies for earning profits for investors. It has not provided a physical address in England. Despite providing no information on how it will make money for investors – including the algorithms behind the Trading Bot – Bitconnect is touting its investments as a ‘safe way to earn a high rate of return. Investing in Cryptocurrency, however, carries significant risk because of regulatory and legal actions, competition from other cryptocurrencies, and the extreme volatility in the price of many cryptocurrencies. The company operates websites and deploys online advertising to recruit sales agents, which it calls ‘affiliates.’ The company provides marketing material to affiliates, including online presentations, and pays them commissions for referrals that result in investments in Bitconnect programs.”

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