Altcoin News, Crypto Coin News, Law and Legislation

U.S Securities Commissioner Issued ‘Cease & Refrain’ Orders Against 3 Crypto Promoters.

In line with a recent announcement published, the companies at the middle of the orders of cease and refrain are Crystal Token [CYL], Advertiza Holdings (Pty) Ltd., and Life Cross Coin a/k/a LifecrosscoinGmbH. As per the statement, Crystal Token [CYL] is an evolutionary multi-utility Ethereum based ERC-20 token, that guarantees earnings up to 2 % per day. The token’s web site allegedly contains dishonest claims of “excessive unsubstantiated” rates of offerings on the investment of investors. Even Crystal Token [CYL] isn’t licensed as per U.S Securities and Exchange Commission [SEC] to sell securities in the country.

Advertiza Holdings offers cryptocurrency referred to as Tizacoin [TIZA] and claims that holders can expect to form a take advantage of the appreciation of the worth of Tizacoin [TIZA] tokens. That, per U.S Securities and Exchange Commission [SEC], indicates that the token’s description as a utility token is wrong, and is instead a security.

According to the North Dakota Securities Department, Advertiza incorrectly claims to be licensed under the U.S Securities and Exchange Commission [SEC] and is additionally not registered to sell securities in the country.

The 3rd firm, Life Cross Coin, operates an internet site from a Berlin address related to ransomware, malware, and identity fraud, and offers a cryptocurrency referred to as Life Cross Coin [LICO]. The firm claims that the token are going to be spent on charity, whereas investors allegedly get a huge income out of the investors investment. Life Cross Coin [LICO] isn’t registered in the country, and its web site reportedly contains unsupported claims and lacking misrepresentations.

Securities Commissioner ‘Karen Tyler’ while added more stated:

“The continuing exploitation of the cryptocurrency scheme by criminals may be a vital threat to Main Street investors. In conventional fashion, criminals are cashing in on the packaging and excitement around the blockchain technology, crypto assets, and ICOs – investors ought to be extremely cautious once considering an investment.”

This order is a part of series of the ‘Operation Cryptosweep’, a coordinated multi-jurisdiction investigation into probably illicit crypto investment programs, that involves forty U.S and Canadian state and provincial securities regulators. Since after the initiative’s launch from the month of May , investigators discovered concerning thirty thousand crypto-related domain names and conducted over two hundred investigations of ICOs.

Even earlier in May, the Colorado Securities Commissioner launched probes into 2 corporations — California-based Linda Healthcare Corporation along with Broad Investments LLC which is Washington base for encouraging illicit crypto currencies and ICOs.

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