This investigation has been a part of Operation Cryptosweep including around 40 US with Canadian securities regulators. The North Dakota securities department was after the firms offering fraudulent investment scheme.
The initial firm on the list is the mega-scam company, BitConnect. A while ago, news on BitConnect’s Ponzi scheme was already buzzing several media around the world. North Dakota follows North Carolina, Colorado, and Texas for issuing cease orders against the crypto company.
The Securities Commissioner at North Dakota, Karen Tyler issues the orders on Wednesday against three crypto firms. Moreover, the State of a securities department wrote:
The companies that are the subject of the orders are Bitconnect and related companies Bitconnect Ltd. and Bitconnect International Plc., Magma Foundation and related companies Magma Coin and Magma, and Pension Rewards Platform, aka Pension Rewards.
The department explains that the three crypto companies don’t authenticate to provide securities in the state. However, these official websites which seek ICOs investments are available to state residents.
Karen Tyler also explains that,
Bitconnect’s website claims that holders of their BCC [token] can receive interest rates of up to 120%…Bitconnect’s claim of excessive interest rates is unsubstantiated and misleading.
Magma Foundation or Magma is a second name on the list of cease orders. According to Karen Tyler, the Magma are conducting an ICO for MGM token alleging which is backed by gold or ETFs.
The last company on the list is the Pension Rewards Platform or Pension Rewards. However, the website claims to say their coin pcoin or $pcoin will multiply rapidly. This will generate a large profit for investors and will grow in no time. However, this counts under insubstantiality.
According to Karen Tyler, the company doesn’t offer information for investors on financial risk information. They also don’t have any allowable means to offer the promising return. The orders are likely the resulting initiative of investigations by the ICO task force department.
They are liable to identify ICOs and cryptocurrency incorporating investments that might pose a risk to North Dakota investors. However, some say that this move is a part of Operation Cryptosweep. This initiative was a multi-jurisdiction investigation which includes around 40 US and Canadian securities regulators.
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