Coin-Miners - Crypto Currency Tracker logo Coin-Miners - Crypto Currency Tracker logo

Seeking Alpha 2022-09-28 01:31:17

California financial watchdog takes aim at 11 crypto firms allegedly operating like Ponzi schemes

California's financial regulator has issued desist and refrain orders against 11 crypto-focused firms Tuesday for allegedly breaching state securities laws. All of the companies "allegedly offered and sold unqualified securities and ten of them also made material misrepresentations and omissions to investors," the California Department of Financial Protection and Innovation ("DFPI") said in a release. "The entities are all alleged to have used investor funds to pay purported profits to other investors, in the manner of a Ponzi scheme," the watchdog said. "Furthermore, each of the entities had a referral program that operated in the manner of a pyramid scheme."Ultimately, all of the companies promised investors commissions as an incentive for them to recruit an ever-increasing number of new investors. Some of those entities, which are "classic examples of high yield investment programs," featured Elevate Pass, a crypto advertising and trading platform, Metafiyielders, a decentralized finance platform and Sytrex Trade, a crypto and forex trading platform, the DFPI said. The enforcement actions come as regulators (not just in the U.S.) aim to clamp down on illicit activities within the emerging crypto space to safeguard consumers. For instance, the Securities and Exchange Commission recently sued Dragonchain for its role in unregistered crypto asset securities offerings. Elevate Pass nor Metafiyielders did not immediately respond...

freebitcoin
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.