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Offers of cryptocurrency coins ordered to cease and desist Economic news Bismarck-Mandan

A state task force formed to investigate cryptocurrency investments has scored its first enforcement action.

North Dakota Securities Commissioner Karen Tyler issued ceasefire orders against BitConnect and related companies, BitConnect LTD and BitConnect International PLC, Magma Foundation and related companies, Magma Coin and Magma and Pension Rewards Platform not to be registered with status and potentially fraudulent securities.

The three companies are Initial Coin Offerings. An ICO is a method of financing used by start-ups to raise capital by selling its virtual cryptocurrency to investors.

Tyler convened the three-person ICO Task Force in August to identify allegedly fraudulent ICOs that pose a risk to investors in North Dakota. The effort is part of the Cryptosweep operation, a multi jurisdictional jurisdiction and jurisdiction study involving more than 40 US and Canadian securities regulators.

"I think you can expect to see a regular cadence on this," Tyler said about the fight against ICOs.

The department has open and ongoing investigations on seven other companies and will continue to open more as the previous ones close.

In the case of the three companies that have received contract termination orders, the Tyler department states that the companies are making fraudulent statements about the potential return on investment.

The BitConnect website states that holders of its BCC can receive interest rates up to 120%. BitConnect, BitConnect LTD and BitConnect International PLC have been previously ordered by several states, including Colorado, North Carolina and Texas, related to unregistered activities and frauds.

The Magma Foundation is the subject of a cessation and disposal order issued by the Colorado Securities Division. His website contains allegedly fraudulent content, including false images and names of people represented as the Magma Foundation's executive team.

The Pension Rewards platform offers "$ Pcoin" or "Pcoin" to finance its platform to connect freelancers to the available opportunities of the workforce. According to the Securities Department, the company fails to disclose financial and risk information to potential investors, nor does it describe the means by which it will provide the promised return on investment.

"The expanding exploitation of cryptocurrency ecosystem by financial criminals is a significant threat to Main Street investors," Tyler said in a statement. "Financial criminals are taking advantage of the hype and excitement around blockchain, crypto assets and Ico: investors should be extremely cautious in considering a related investment."

Globally, Ico have raised $ 5 billion last year and are about to raise $ 6 billion this year, Tyler said.

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