Based on recent news, the state of North Dakota is riping great benefits from joining the Operation Cryptosweep. The North Dakota State’s Securities Department has issued a cease-and-desist order, against three Crypto based websites promoting initial Coin Offering (ICO) in the state.
Securities Department Released Their Names
The following companies were issued a cease-and-desist order from the state’s Securities Department:
Advertiza Holdings (Pty) Ltd, and Life Cross Coin aka Lifecrosscoin GmbH and Crystal Token.
The commissioner in charge of the State’s Securities Department, Karen Tyler, decided to issue this order based on the fact that these businesses are acting in fraudulent manners and are also operating without proper licensing.
The services were offering products with unrealistic investment returns. As a result, the commissioner is of the opinion that the companies are set out to harm citizens of the state both psychologically and financially.
To clarify her decision, Karen stated that:
“In formulaic fashion, financial criminals are cashing in on the hype and excitement around blockchain, crypto assets, and ICOs – investors should be exceedingly cautious when considering a related investment,”
Crystal Token, is found wanting of issuing an ERC20 standard token referred to as CYL. The company promise investor a daily return of investment amounting to 2 percent of their investment.
Life Cross Coin, is operating on a platform well known for various financial crimes such as identity theft, money laundering, hacking, fraud etc. The platform Life Cross Coin company is running also has it own fraudulent token attached to false promises.
The last company Advertiza Holdings, is also accused of issuing tokens without proper licensing. According to the company’s website, the token issued by the company guarantees a profit from the appreciation of the company’s returns.
This is not the first time the North Dakota State’s Securities Department will be issuing such order against fraudulent financial crypto related activities in recent time.