Karen Tyler, North Dakota Securities Commissioner, terminated and desist orders due to unregistered and fake securities in the form of ICOs by three companies, reports an announcement.
Life Cross-LifecrosscoinGmBH, Crystal Token and Advertiza Holdings (Pty) Ltd. are the firms that in the center of the orders. According to the statement, Crystal Token (CYL) is an “evolutionary multi-utility” ERC-20 token, which abilities incomes up to two percent each day. The CYL’s website includes fake claims of “excessive unsubstained” tariffs of return on investment. Additionally, CYL is not certified to sell securities in North Dakota.
Advertiza Holdings issues digital currency named “Tizacoin” or “TIZA” and asserts that owners “can expect to make a profit form the appreciation of the value of TIZA tokens.” This statement categorizes TIZA token as a security and not a utility token, as they claimed, according to the regulator.
As stated by the North Dakota Securities Department, Advertiza incorrectly claims to be registered with the U.S. Securities and Exchange Commission (SEC). Yet, the firm is not registered and allowed to sell securities in North Dakota.
Life Cross Coin, lastly the third company, functions a website from a Berlin IP address related with ransomware, malware as well as identity scam. The firm’s cryptocurrency called “Life Cross Coin” or “LICO” and states that their token can be spent on charity, while investors can get a “huge return on investment.” LICO is also not registered in North Dakota. Tyler noted on the instructions:
“The continued exploitation of the cryptocurrency ecosystem by financial criminals is a significant threat to Main Street investors. In formulaic fashion, financial criminals are cashing in on the hype and excitement around blockchain, crypto assets, and ICOs – investors should be exceedingly cautious when considering a related investment.”
The command is a part of Operation Cryptosweep, an organized multi-jurisdiction investigation regarding potential fraudulent crypto investment agendas and contains 40 U.S. and Canadian state as well as local securities regulators. Since May -the month the investigation started- detectives exposed about 30,000 crypto associated territory names and directed over 20 investigations of ICOs.
Author: Berna Bayindir
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