BitConnect’s drawing initial coin offering (ICO) has attracted another cease-and-desist letter from U.S. nation regulators, marking the second time this month.
In a release dated Jan. 9, the regulators from the North Carolina Safeties Division outlined the temporary cease-and-desist, stating that BitConnect hadn’t up to deal or sell securities in the Tar Heel State.
According to the release, the classification determined that BitConnect had planned to sell unregistered securities in their beginning coin offering (ICO), which was scheduled to launch on Jan. 10.
The release continued:
“The Momentary Order to Cease and Desist found that BitConnect was not registered as a transactions or salesman of securities in North Carolina and offered investments called the BitConnect Add suit Program and the BitConnect Staking Program. The Temporary Order to Cease and Desist also originate that BitConnect had omitted to disclose material facts when donation these investments in North Carolina.”
BitConnect has 30 days to counter, according to the temporary cease-and-desist notice. If the company fails to do so, the temporary instruction will become permanent, according to the release.
Last week, the Texas Have Securities Board issued a similar statement regarding BitConnect, which some critics enjoy accused of constituting a Ponzi scheme.
Like their counterparts in North Carolina, the Securities Room issued a temporary cease and desist order, stating that cryptocurrencies are “precarious investments.”
North Carolina image via Shutterstock
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