The New Jersey Bureau of Securities on Wednesday issued emergencies stops to two initial coin offerings (ICO) . The companies in question are Zoptax and Unocall.
According to the official announcement, Zoptax was selling tokens – Zoptax Coin – which falls under the category of securities. The company was aiming to raise up to $3.4 million, with the soft cap set at $500,000.
Similar to Zoptax, the Bureau also charged Unocall for selling unregistered securities through a digitized token sale and investment offer for its “staking program.” The company was also assuring the investors a return of 0.18 to 0.88 percent on a daily basis via its staking program.
“Today’s action demonstrates that our Bureau of Securities stands ready to enforce our investor protection laws in cases involving initial coin offerings and cryptocurrency-related investment schemes,” New Jersey Attorney General Gurbir S. Grewal said.
“As innovation in the online cryptocurrency-related investment market continues, market players need to understand that the rules still apply to them.”
The Bureau also charged both the companies for making false and misleading statements to the investors and not providing mandatory material facts in connection with the offer and sale of its securities including team information and physical address of the company.
An operation to bust illegal crypto investments
The cease and desist of both the ICOs were a part of the US agencies’ ongoing “Operation Cryptosweep” to cracking down illegal ICOs and fraudulent crypto investment schemes.
that the North American Securities Administrators Association (NASAA) is currently investing in more than 130 new crypto-related cases. The agency has also taken enforcement action on 35 cases since the beginning of this year.
Last month, the New Jersey authorities and its president for raising $400,000 by selling unregistered securities through an ICO.
“The Bureau’s actions today, and the actions taken by other securities regulators during ‘Operation Cryptosweep,’ are a reminder to investors that while not every initial coin offering or cryptocurrency-related investment is fraudulent, there are significant risks involved with these products,” Paul R. Rodríguez, acting director of the division of consumer affairs, added.