Regulators Ban Four ICO Projects At Once In Texas
Four crypto projects have to terminate their activity due to the regulator’s charges of selling unregistered assets. They also pledged to pay $25,000 each as an administrative fine.
Following the order of the State Securities Board (SSB) of Texas, the mining and ICO startups Mintage Mining, Nui Social, BC Holdings & Investments, and Social Membership Network Holding have ceased their activities. The corresponding decision is published on the website of the department.
Regulators concluded that the tokensales of these companies fall under local securities laws, and the crypto coins should have been properly registered. Since this was not done, the Texas SSB decided to suspend the operation of the four startups, until they put in order the documentation and receive a license. All the defendants signed the order voluntarily.
Over the past year, Texas regulators have shut down 16 crypto companies that were suspected of fraud. BitConnect, the notorious scam project accused of organizing a financial pyramid by analogy with the Ponzi scheme, was among them. The company registered in India is suspected of raising funds in the amount of $5.6 billion.
It should be mentioned that there is a requirement in the US to register tokens as assets under the Securities and Exchange Act of 1934.
Earlier, the ICO startup Gladius confessed to the SEC the sale of unregistered assets, which made it possible for the company to avoid a fine. Before that, the regulator fined two other projects for $250,000 for a similar offense.