As the Bitcoin and cryptocurrency are gaining greater market exposure, regulators are keeping their eyes close to companies involving illegal activity and Ponzi scheme. Last week, the U.S state of North Caroline issued desist order to Power Mining Pool (PMP), a cryptocurrency mining pool that promises to offer daily profits.
Securities Division found that the firm was violating securities Act; it states PMP was:-
a. Offering unregistered securities in the form of ‘mining pool shares.
b. offering securities while it is not registered to do so,
c. making material misstatements when offering securities.
According to reports, the firm has failed to response a temporary cease order which was received a month ago. As soon as the website gets cease order on March 2, it went offline on March 6 rather than responding to the order.
The order writes that its securities are not registered – thus it mandates the company and anyone involved in this to stop selling securities in the state until it gets registered. In addition to this, any employee, entity, director or person involved in this must not act as a securities dealer, salesman or agent unless registered with the state.
As similar as the desist order sent out to Bitconnect Ponzi scheme, Power Mining Pool should not deal with any offer that violates other provisions.
The investigation reveals that the identity behind PMP such as the physical place of business and the individuals are not recognized. However, the company claimed to own and operate mining rigs that can mine seven different cryptocurrencies around the cock every week.
Moreover, it states “switch resources away from less profitable coins.”
Beside mining rigs, PMP was open for investors, it states “Investors who purchase mining pool shares must first purchase bitcoin with their fiat currency, such as the U.S. Dollar or Euro,”
“Next, PMP directs investors to deposit their bitcoin into PMP’s bitcoin wallet in order to set up an account on the PMP website.”
With PMP, investors are rest assured to earn profit from the trading pool in every three hours. In addition, the Secretary of State of North Carolina wrote
The mining pool shares are securities and are not registered with the Administrator. PMP willfully fails to disclose material facts when offering the mining pool shares.
Image Source:- US States