Managing securities of the state of new Jersey banned the activities of the cryptocurrency investment site Bitstrade, which, in the opinion of the financial regulator, offered customers properly unregistered securities.
Potential customers were promised daily income from crypto investments in the amount of 10%, which the financial regulator regards as fraud. While Bitstrade not registered as a company carrying out operations with securities, and does not disclose key information about its activities. Unknown the names of the leaders, the financial status, office address, etc., that is a violation of state law on securities.
«The management solution supports the intention of the state government to protect investors in the field of crypto-currency investment. We want to be sure that investors will not be fooled when you send funds to anonymous Internet company, no idea — where they go and how they will used,» said attorney General new Jersey Gurbir Grewal (Gurbir S. Grewal).
In addition, these on the website Bitstrade the physical offices either do not exist or belong to other companies that have nothing to do with the cryptocurrency trade have not.
«Bitstrade — a vivid example of a company seeking to benefit from kleptomania,» said Christopher W. Gerold (Christopher W. Gerold), the head of the Bureau of securities of the state. «Regulators, including our Bureau, trying to react and protect potential investors from such projects.»