The New Jersey Bureau of Securities has issued an emergency cease-and-desist order against three online cryptocurrency promoters for offering unregistered securities in the state.
The orders were issued against Bullcoin Foundation a/k/a Bullcoin Gold, Trident d/b/a Trident Crypto Index Fund, and Springcryptoinvest.
The Bureau found Bullcoin and Trident offering investors an unregistered security in the form of an Initial Coin Offering (ICO) of their respective tokens or coins through their website and through various social media websites.
The Bureau also found Springcryptoinvest offering investors an unregistered security in the form of various investment packages in the same way.
The actions are part of probably one of the largest coordinated international crypto-crackdowns being conducted by state and provincial securities regulators in the U.S. and Canada since the beginning of May.
The crackdown dubbed "Operation Cryptosweep" is conducted in coordination with the North American Securities Administrators Association (NASAA), with 44 jurisdictions participating from the U.S. and Canada. The New Jersey Bureau is a member of NASAA.
"Not every initial coin offering or cryptocurrency-related investment is fraudulent, but the risk of fraud is significant," said Christopher Gerold, Chief of the New Jersey Bureau of Securities and Chair of NASAA's Enforcement Section.
As part of Operation Cryptosweep, the Bureau has issued two investor advisories "What to Know About ICOs" and "Be Cautious of the Crypto Investment Craze" on their website.
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