North Carolina Bans BitConnect

BitConnect was ordered to cease and desist from offering for sale in or from North Carolina
11 January 2018   896

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.

US Court Freezed BitConnect Assets

Funds freezing is the answer of second lawsuit against BitConnect
01 February 2018   84

The US court imposed a temporary ban on the accounts of the crypto project BitConnect, according to which all assets of the company should be frozen. It is 'the answer" to the second collective lawsuit filed against the company, Coindesk reports.

The resolution obliges respondents to disclose the addresses of the cryptocurrency wallets and trading accounts of BitConnect, as well as the identity of all to whom the company sent digital assets within the last 90 days.

The defendants have 10 days to execute the order. In addition, BitConnect International PLC, BitConnect LTD, BitConnect Trading LTD and Ryan Maasen are prohibited from transferring any assets without separate court authorization.

On the eve of these events, a resident of Kentucky, Brian Page sued BitConnect International, BitConnect LTD, BitConnect Trading LTD and Ryan Maasen, Oklahoma resident, who promoted the project.

Page is demanding compensation for losses to all investors who lost money after the closure of the cryptocurrency exchange and credit programs under pressure from the state regulators of Texas and North Carolina. The rate of BCC coins fell by 98.8% from the absolute maximum reached in December, and at the moment is about $ 6.

As a result, the court considered that the plaintiffs will not have a chance to recover their funds if the BitConnect assets are not frozen, and the temporary ban was imposed "in the public interest, because the public is interested in preventing mass fraud and other violations of securities laws."