A organization behind an ongoing initial coin supplying (ICO) has been issued a cease-and-desist notice from the U.S. state of Vermont.
The Vermont Division of Monetary Regulation stated Monday that it was sending the cease-and-desist to LevelNet, which according to its web site is primarily based in Irving, California. Officials accused the firm of “violations related to the Vermont Uniform Securities Act” and ordered it to cease promoting tokens tied to its cybersecurity-related platform.
Per the LevelNet site, approximately $752,000 has been raised therefore far throughout the sale. An emailed request for comment was not returned by press time.
The action came as component of a broader crackdown on investment schemes involving cryptocurrencies recognized as Operation Cryptosweep. As previously reported by CoinDesk, a range of securities regulators in the United States and Canada have coordinated their efforts in a bid to stifle token sale and cryptocurrency scams.
According to the North American Securities Administrators Association (NASAA), “almost 70” on inquiries have been launched in recent months.
“The rapid rise of Bitcoin has created Main Street investors aware and interested in cryptocurrencies and ICOs,” Michael Pieciak, a commissioner for the Vermont Division of Economic Regulation, said in a statement, adding:
“Though a lot of are reputable offerings that are fully compliant with law &ndash a lot of are not &ndash and this order serves as a excellent reminder to exercising caution when contemplating investing in these items.”
Image via Shutterstock
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic requirements and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Published at Mon, 04 Jun 2018 17:45:30 +0000