Local regulators of the state of New Jersey, USA have sent a cease-and-desist order to Bitstrade, an online cryptocurrency investment site, alleging that the company is fraudulently offering securities in the state.
On Friday (February 9), the state’s Bureau of Securities, a division of New Jersey Attorney General Gurbir Grewal, said in a press release that it was moving to prevent Bitstrade from making further offerings, which, according to the bureau, failed to disclose information about its physical location, financial health or the names of its senior employees.
According to the press release, Bitstrade is not currently registered to offer securities in the state.
“The Bureau’s action today reinforces our commitment to protecting investors as they navigate the uncharted and largely unregulated domain of cryptocurrency-related investments,” said Attorney General Gurbir Grewal. “We want to make sure that investors tempted to cash in on the cryptocurrency rage aren’t being lured into sending funds to an anonymous internet entity without knowing where the funds are going or how they’ll be used,” he added.
The New Jersey regulators’ decision continue a recent trend of state regulators issuing cease-and-desist orders to suspected cryptocurrency scams.
Last month, regulators in Texas, for example, have sent such notices to R2B Coin — a Hong Kong-based company behind an ICO — and to DavorCoin, a crypto-lending platform similar to BitConnect. BitConnect, which collapsed last month, has since sparked several class-action lawsuits in the U.S.
*Featured Image via Legal Logik
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