US State Regulators Hit BitConnect With Second Cease-And-Desist
North Carolina became the second state to halt BitConnect's ICO after issuing a temporary cease-and-desist.
Jan 11, 2018 at 6:00 p.m. UTC
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BitConnect's planned initial coin offering (ICO) has attracted another cease-and-desist letter from U.S. state regulators, marking the second time this month.
In a release dated Jan. 9, the regulators from the North Carolina Securities Division outlined the temporary cease-and-desist, stating that BitConnect hadn't registered to deal or sell securities in the Tar Heel State.
According to the release, the division determined that BitConnect had planned to sell unregistered securities in their initial coin offering (ICO), which was scheduled to launch on Jan. 10.
The release continued:
BitConnect has 30 days to respond, according to the temporary cease-and-desist notice. If the company fails to do so, the temporary order will become permanent, according to the release.
Last week, the Texas State Securities Board issued a similar statement regarding BitConnect, which some critics have accused of constituting a Ponzi scheme.
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Like their counterparts in North Carolina, the Securities Board issued a temporary cease and desist order, stating that cryptocurrencies are "risky investments."
North Carolina image via Shutterstock
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