New Jersey attorneys have sent a cease and desist letter to a cryptocurrency investment fund called Bitstrade. This firm claimed that it is registered U.S. financial startup. It offers digital asset banking services. According to New Jersey officials, this firm unlawfully provided investors unregistered securities in the form of a pool that claims to guarantee up to 10 percent returns.
The Bureau of Securities and the Attorney General have found that Bitstrade is not registered to sell securities in New Jersey and does not guarantee investment profit. Attorney General Gurbir S. Grewal stated that this firm was managing and selling securities unlawfully. He also added that the Bureau wants to protect investors and remind them to be extra vigilant about fully vetting what is being sold before investing in cryptocurrency.
We want to make sure that investors tempted to cash in on the cryptocurrency rage aren’t being lured into sending funds to an anonymous internet entity without knowing where the funds are going or how they’ll be used.
New Jersey’s Attorney General
More than that, Bitstrade is violating the law by failing to disclose to prospective investors the names of its executive officers, the address of its principal office, information about Bitstrade's financial condition. The firm even did not inform how it invests investors’ money.
New Jersey’s officials plan to regulate cryptocurrency asset industry more due to a high risk of fraud.