Texas Cryptocurrency Firms Agree to Stop Token Offerings After Cease and Desist
Texas State securities regulator declared that it had reached an agreement with four cryptocurrency companies, according to an order released on February 21st. The four companies were accused of selling unregistered securities.
After a nine-month process, Mintage Mining, BC Holdings and Investments, Social Membership Network Holding, Nui Social, and manager Darren Olayan agreed to keep themselves away from offering cryptocurrency tokens to investors.
As per the order, the entities will also pay an administrative fine of $25,000.
In July last year, the Texas State Securities Board (SSB) detected token offerings by the companies as falling under the definition of securities according to local legislation.
As per the latest order, the findings were confirmed, and it requires no further activity to take place until suitable licensing and documentation are collected. All the named respondents signed the order.
The move is a part of the most recent victory for the SSB in its ongoing clampdown on unregistered securities sales by the emerging cryptocurrency sector. As per a report, bad actors in the space are subject to intense scrutiny, mirroring a nationwide operation by the United States Securities and Exchange Commission (SEC).
Last month, SSB revealed issuing a total of 16 orders to industry players in 2018 that it suspected of being scams.
The order included BitConnect. It is the alleged Ponzi scheme which now forms the focus of a joint FBI operation.
“The orders cited a total of 60 individuals and entities,” the regulator said.
In its yearly roundup, it stated,
“None of the individuals or firms was registered to sell securities in Texas.”
