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.
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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.
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.
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