North Dakota’s securities regulators are taking strict actions against ICO’s operating illegally in the state.
This was made known on Thursday by the Commissioner of North Dakota Securities Department, Karen Tyler.
Tyler issued a stern warning against three companies for offering “unregistered and potentially fraudulent securities in the form of ICOs.”
According to the press release, the regulator alleged that the companies, namely; Crystal Token, Life Cross Coin and Advertiza Holdings, are not only unregistered to offer securities in the state, but also placed fraudulent statements on their websites with claims of excessively high returns, insufficient disclosures and misrepresentation of facts.
Furthermore, Advertiza allegedly falsely claimed it had filed with the SEC, while Life Cross Coin’s website is operated from a Berlin IP address “associated with ransomware, trojans, and identity fraud.”
“The continued exploitation of the cryptocurrency ecosystem by financial criminals is a significant threat to Main Street investors,” said Tyler, adding:
“In formulaic fashion, financial criminals are cashing in on the hype and excitement around blockchain, crypto assets, and ICOs – investors should be exceedingly cautious when considering a related investment.”
However, this is not the first time the agency is taken action against companies promoting ICOs in the state, it would be recalled that in September, the agency issued warnings against BitConnect, Magma Foundation and Pension Rewards Platform.
More so, this is not only in the state level, as the federal government in conjunction with the Securities and Exchange Commission (SEC) announced yesterday that it is suing an ICO project and its operator for falsely claiming to have received approval from the agency.
The SEC also asked a U.S. district court to enforce a subpoena on Wednesday as part of a probe into alleged pump-and-dump tactics that involved claims of a $100 million ICO.