The Massachusetts state authorities decided to suspend five ICOs, because they believe that their organizers are engaged in the distribution of unregistered securities. This is reported by CoinDesk.
The Secretary of Massachusetts William Galvin ordered the organizers of ICO 18moons, Across Platforms, Mattervest, Pink Ribbon and Sparkco to suspend the fundraising after studying each of the campaigns.
Officials found that these campaigns were conducted in violation of the "General Law" of the state, according to which shares, bonds and investment contracts that guarantee profitability are recognized as securities. These five ICOs were identified during a larger state market inspection conducted by the state.
The organizers of the above mentioned ICOs are required to return the money to investors within 30 days. Companies are given another 45 days for direct transfer of funds, after investors are notified of ongoing activities.
According to the order, startups must provide detailed accountability after settlement with investors.
In addition, their organizers must permanently abandon the sale of unregistered securities in the state. At the same time, they are invited to go through official registration and distribute securities on legal grounds.
It is noteworthy that the regulators decided to abandon further investigation until the said ICOs return money to investors. However, if they refuse to comply with the demands of the authorities, the case will be referred to law enforcement agencies that "can take appropriate measures."