New Jersey hits five crypto scams with cease-and-desist orders

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On October 28, the New Jersey Attorney General and the New Jersey Bureau of Securities announced cease and desist orders against five websites carrying out cryptocurrency-related frauds.

Bulk Investments, Forte Trade, Dilna Investments d / b / a Fidelity Revenue, RealBitcore Mining and FilefxOption all, according to authorities, advertise to investors using a combination of fuzzy promises of return, false registration statements or license and false testimony.

The ad cites three New Jersey residents scammed out of nearly $ 90,000 by the top three companies, either failing to return the bitcoin investments that investors had come to withdraw, or demanded exorbitant flows and until- there hidden to do this.

The ordinances in question further claim – with some variations – that companies “offer titles that are neither registered with the Bureau, nor ‘federally covered’, nor exempt from registration, in violation of NJSA 49: 3-60 ”.

In other words, the “investment strategies” that these companies tout are not just scams, but also offers of securities. Regardless of their scam status and the involvement of the state attorney general, these orders did not include criminal charges.

The New Jersey Bureau of Securities is increasingly active in the regulation of cryptocurrency investments. Most notably, the state has been at the forefront of technology when it comes to crypto interest accounts. New Jersey has started the charge against Jersey City-based BlockFi, then Celsius, who both offer what they amount to high-interest savings accounts without FDIC insurance. The Securities Office calls these securities.

This more recent action is less involved, however, as the five named companies were not returning user investments, which is an accusation that neither New Jersey nor any other state agency has made against BlockFi or Celsius.

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