New Jersey’s Attorney General has officially announced the ceased order at Bitstrade on account of offering unregistered securities fraudulently.
Another Ponzi Scheme Is Exposed Off
Following Bitconnect’s Ponzi scheme, yet another Bitcoin company is offering fraudulent securities. According to New Jersey regulator, Bitrstrade which is an online cryptocurrency-related investment firm was violating the New Jersey’s Uniform Securities law by deceptive offering unregistered security. The cease and desist letter to Bitstrade should be effective immediately. Becuase the firm is guaranteeing ten percent regular returns on investment pooled from unregistered securities.
Beside the matter of securities, the firm hasn’t shared the crucial details to prospective investors. It founds claims that the firm failed to disclose “key material facts,” including, the names of the executive officers, note on company’s financial conditions, office location, risk concerning Bitstrade investment and the process of investment as well.
The Attorney General Grewal said
“The Bureau’s action today reinforces our commitment to protecting investors as they navigate the uncharted and largely unregulated domain of cryptocurrency-related investments.”
“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.
Fraudulent Crypto-Cloaked Securities Offerings
However, visiting at www.bitstrade.org points out Bitstrade’s Ponzi investment schemes,
At first, they offer “Bitstrade investment pool” wherein it collects “multiple lower value investments.” It accumulates all such investment to group them into a single “HUGE investment” and then using those funds to trade on the stock market. They do this to generate outstanding returns. Moreover, it demands securities purchases in Bitcoin and promises to make higher returns.
Also Mr. Sharon M. Joyce, who is Acting Director of the Division of anonymous stated,
“What makes Bitstrade’s fraudulent offer potentially more harmful for unsophisticated investors is that cryptocurrency is virtually anonymous, so there is no recourse for investors to recoup their losses”
With this, he warned investors to make due diligence before deciding on investing with cryptocurrency.
The agency further found that various address listed on the website was fake. Redland, California and Scottsdale, Arizona addresses don’t exist.
According to Christopher W.Gerold, Chief of the Bureau of Securities,
Bitstrade is a prime example of a company seeking to capitalize on the cryptocurrency craze