New Jersey Regulator Orders Crypto Platforms to Stop Offering Fraudulent Investments
Main page News, US Market, business, Crypto Market, Regulations

The New Jersey Bureau of Securities has issued five orders to cryptocurrency companies touting "fraudulent investment" activity that violates New Jersey financial law. According to an announcement, Bulk Investments, Forte Trade Limited, Dilna Investments Ltd. d/b/a Fidelity Revenue, RealBitcore Mining, and FileFxOption and FileFxOption Limited.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

The agency says the companies have been engaging in "fraud in connection with the offer and sales of securities." Particularly, the platforms conducted:

  • omitting material facts to potential investors such as the identity of their principals, how investors funds would be used, and the risks of their investment plans;
  • listing phony addresses for their places of business;
  • falsely claiming to be "registered", "licensed", "insured", or otherwise authorized to sell securities; and
  • posting bogus testimonials from clients that use stock photos and canned statements that appear on multiple cryptocurrency investment websites under different entity names.
Alabama Joins New Jersey in Fight Against BlockFi

The regulator also believes that the platforms have been violating New Jersey Securities Laws by "offering and selling unregistered securities." Earlier this year, the New Jersey regulator sent an order to BlockFi, a cryptocurrency lending service, over the company's business. The watchdog said the company had been funding its business at least partly through the sale of unregistered securities.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.

Read also:
Please describe the error