New Jersey state regulators believe that the business of Bitsaratde is "fraudulent." Following this, they issue the cease-and-desist order to Bitstrade. What do we know about the firm?
12 February, AtoZForex – The New Jersey state regulators have made a public announcement. The officials have stated that they sent a cease and desist order to one of the cryptocurrency investment platforms. The name of the firm under the spotlight is Bitstrade. The regulators argue that the business of Bitstrade is “fraudulent.”
New Jersey State Regulators Issue Cease-and-Desist Order to Bitstrade
The official press release from the New Jersey regulators has been issued along with the “emergency order”. The press release has cautioned public that Bitstrade has no license to offer securities in the state of New Jersey. Moreover, the state watchdogs mentioned that Bitstrade was breaching the law by not disclosing the primary information about its operations.
the firm operates online via http://www.bitstrade.org.
The release reads:
“...he Bureau found that Bitstrade is violating the State’s Uniform Securities Law by offering investors an unregistered security in the form of an investment pool that purportedly guarantees up to 10 percent returns which accrue daily on investor funds. Bitstrade is not registered to sell securities in New Jersey.”
As for the withholding information, the order from the regulators specifically refers to “failing to disclose key material facts to prospective investors, including the names of its executive officers, the address of its principal office, information about Bitstrade's financial condition, the risks of the Bitstrade Investment, and how Bitstrade invests investors’ money, the Bureau found.”
AriseBank is a “total scam”
This cease and desist order appears just some weeks after the Texas state regulators have ordered the self-proclaimed “cryptocurrency bank” AriseBank to suspends operations.
Arise has appeared in the public when an alleged partnership with BitShares and a launch of an ICO were exposed as a scam. The project has described itself “the first ever decentralized banking platform.”
The Arise project was led by a person who also has attracted quite a negative publicity, Jared Rice. Mr. Rice has been known for defrauding business partners according to the reports available online. The ICO of Arise and the partnership has caused authorities to look closer into the activities of the firm. After inspecting the website of the entity, researchers have concluded that the business is a “total scam.”
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