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New Jersey Issues Cease-and-Desist to Crypto Investment Firm

New Jersey regulators deceive sent a cease-and-desist letter to an online cryptocurrency investment site, saying that the company is fraudulently offering securities in the state.

The state’s Division of Securities, along with the New Jersey Attorney General, said Friday morning that it was telling to prevent Bitstrade from making further offerings, which legals said failed to disclose information about its physical location, monetary health or the names of its senior employees.

Bitstrade boasts on its website that it is “a indicated United States company providing Private Banking service to the magnitudes,” though the address listed at the top is the same as Blue Razor, a domain registration society based in Scottsdale, Arizona. A message sent through Bitstrade’s online dispatch system was not immediately returned at press time.

According to the release, Bitstrade is not currently registered to put up securities in the state.

Attorney General Gurbir Grewal said in a annunciation:

“The Bureau’s action today reinforces our commitment to protecting investors as they manoeuvre the uncharted and largely unregulated domain of cryptocurrency-related investments. We want to flatter sure that investors tempted to cash in on the cryptocurrency rage aren’t being lured into sending backs to an anonymous internet entity without knowing where the funds are prevailing or how they’ll be used.”

Friday’s developments continue a recent trend of brilliance regulators issuing cease-and-desist letters to suspected cryptocurrency scams.

In the over and done with month, regulators in Texas, for example, have sent such discerns to a Hong Kong-based company behind an ICO and a crypto-lending platform akin to BitConnect, which come to an ended last month and has since sparked several class-action lawsuits in the U.S.

New Jersey portrait via Shutterstock

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