The Alabama regulator issued a decree on the termination of five crypto-exchange companies

The Alabama regulator issued a decree on the termination of five crypto-exchange companies

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The Alabama Securities Commission (ASC) has moved to legal measures against five ICO startups under Operation Crypto-Cleanout by the North American Securities Administrators Association (NASAA). This is written by Bitcoin.com.

“Fraud related to ICO and crypto-investment products poses a serious threat to individual investors in Alabama,” said ASC director Joseph Borg. “The Commission intends to quickly and effectively protect investors from schemes associated with these products.”

Three companies from Los Angeles received letters demanding the cessation of illegal activities. Extrabit Ltd. offered investors to buy their EXB tokens at half price, while actually distributing unregistered securities, the regulator says. Potential investors were offered to buy tokens for $20,000 and expect their receipt within 48 hours. To holders of the token, the company promised 185% quarterly revenue, which was to be provided by its activities in the mining of bitcoin, Monero and Zcash.

Leverage provided a cryptocurrency loan platform with a daily flexible interest rate for investors. ASC also considered Leverage’s offer to be the dissemination of unregistered securities. Against a third company from Los Angeles – Pool Trade – was put forward a similar charge.

Platinum Coin from Miami attracted investors with a guaranteed annual interest rate of 320%. In addition to the distribution of unregistered securities, its actions were qualified by ASC as providing unrealistic promises. The fifth recipient of the letter of regulator Chain Group Escrow was located in the state of Washington and operated under the guise of an escrow company for online services.

Earlier in the field of view of regulators got a startup Shipchain, which was suspected of the distribution of unregistered securities in the territory of South Carolina.

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