The Financial and Consumer Affairs Authority (FCAA) of Saskatchewan, Canada, has cleared a bitcoin startup of breaching securities law.

A decision from the FCAA panel, announced on 22nd October, found that Dominion Bitcoin Mining Company Ltd did not solicit investors, nor offer shares illegally.

Guild of Guardians Built to 'Win' the Web2 Mobile Space: Game Director

13:18

Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO

05:10

Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny

04:07

The first video of the year 2024

40:07

The last regression video of the year 3.67.0

Its statement reads:

"It is the determination of that Panel that, notwithstanding the initially apparent validity of the allegations of the FCAA staff, an offering of shares did not at material times exist, and the parties did not engage ... in any breach of the provisions of the Act [The Securities Act, 1988]."

The decision follows a 17-month dispute over claims Dominion's founders – Jason Dearborn, Peter Voldeng and Ronald Gibbonthe – had offered securities from their website, dominionbitcoin.com.

During a FCAA hearing, investigator Harvey White presented screenshots from the site, including a page that read: "By taking part in our offering, you own a share in one of ten provincial companies that own Dominion. That share allows you an equal part in EVERY SINGLE BITCOIN WE EVER MINE."

Another section of the website stated Dominion was accepting "sophisticated" investors from the 10 provinces that make up Canada.

However, the respondents argued that their website was under construction at the time (they allege encrypted data was exposed following a hack) and did not accurately reflect the project's status. In fact, the corporations mentioned on the site did not yet exist – and there were no Dominion securities to sell.

As a result, the founders were cleared. "The Respondents had no clear picture of what an investor might be investing in," the FCAA's document reads.

Future plans

At this point, little is known about Dominion beyond its name. "We're expecting to actually develop the largest bitcoin mine in Canada," President Voldeng told CBC News last September, while plans to trade the currency are reportedly in the works.

The company – whose domain is now disconnected – said it is unlikely to operate in Saskatchewan. Voldeng said it is also planning to sue the FCAA for libel.

While Dominion has been cleared of all allegations, other bitcoin schemes have been revealed to be highly profitable scams.

Last month, US resident Trendon Shavers plead guilty to securities fraud, having received approximately $4.5m while operating the Bitcoin Savings & Trust (BS&T).

The organisation, which was investigated by the US Securities and Exchange Commission (SEC) in 2013, promised investors 7% returns on bitcoin arbitrage in 2011 and 2012.

STORY CONTINUES BELOW

Recommended for you:

Hat Tip: The Globe and Mail

Saskatchewan River image

via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.