Author: Gan Jia Ci
ShipChain is a shipment startup that runs on the Ethereum blockchain to manage shipment tracking with a “sidechain to track individual encrypted geographic waypoints across each smart contract”.
According to a letter published personally by the ShipChain team on 24 May, the startup is disputing the claims by South Carolina Attorney General’s Office of allegedly flouting state securities laws.
On 21 May, the Office issued a cease-and-desist order which prohibited ShipChain from performing business in South Carolina in violation of the Act and is “permanently barred from participating in any aspect of the securities industry in or from the State of South Carolina.”
In the letter, ShipChain declared that the state commissioner did not contact them beforehand to verify the charges against them. Furthermore, they stated that the order did “not state what the evidence is or who made the accusations.”
ShipChain explained that their sale of private tokens was done appropriately according to the securities laws and was concluded by January before they relocated to South Carolina.
According to the team, ShipChain did not offer, issue or sell tokens and does not plan to do so in the future. The company also affirmed that the tokens were sold initially to qualified investors, including individuals and institutions.
“ShipChain is not aware that SHIPs were even offered in South Carolina or to any South Carolinian during the private sale.”