BitConnect received the second order to terminate activities from US regulators

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The scheduled ICO of BitConnect stumbled upon another ban from US financial regulators – the second time this month. This is written by CoinDesk.

In a document published on January 9, the North Carolina Securities Department announced a temporary ban on the activities of BitConnect, as it is not registered in North Carolina as a seller and buyer of securities.

According to the document, the Department found that BitConnect planned the sale of unregistered securities in its primary token location (ICO), which was scheduled for January 10.

Further according to the text:

“BitConnect is not registered in North Carolina as a dealer or securities seller and offers investments called” BitConnect share program”and” BitConnect loan program”. In addition, it was discovered that BitConnect refrained from disclosing important facts during the offer of these investments in North Carolina.”

According to the document, BitConnect has 30 days to respond. If the company does not react in any way, the interim ban will become permanent.

Last week, the Department of Securities of the State of Texas issued a similar statement regarding BitConnect. Moreover, some critics accuse the company of organizing a financial pyramid.

Texas regulators, like their colleagues from North Carolina, issued a temporary ban on the termination of BitConnect, concurrently saying that cryptocurrencies are “risky investments.”

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