The Securities Division of the North Carolina Department of Secretary of State issued on January 9 a temporary order to cease and desist to Bitconnect.
BitConnect was ordered to cease and desist from offering for sale in or from North Carolina, any securities unless and until such securities have been registered and BitConnect, and any person or entity under the direction or control of BitConnect, is properly registered as a securities dealer or salesman.
According to the order, BitConnect was not registered as a dealer or salesman of securities in North Carolina and offered investments called the BitConnect Lending Program and the BitConnect Staking Program.
It also stated that BitConnect had omitted to disclose material facts when offering these investments in North Carolina. These activities are in violation of the North Carolina Securities Act. The Temporary Order to Cease and Desist gives BitConnect 30 business days in which to request a hearing.
Earlier in January, the Texas Securities Board handed the investment platform a similar cease and desist order, barring the company from operating within the state. The British Registrar of Companies has also sent an official legal notice to BitConnect, warning to shut down the company and dissolve its operation.