Alabama's regulator outlaws three ICO-projects

Posted 29 May, 2018

The Alabama Securities Commission has ordered to stop distribution tokens of the Extrabit mining company in the State, following the authorities in Texas and New Jersey. The latter has lately focused on the crypto projects attracting local investments.

According to the official report, the regulator stated that the advertisements of the tokens on the WSFA website, being the affiliated company of NBC broadcasting agency holding license in the capital of Montgomery State were offers of unregistered securities, which means that the company applied illegal actions for the attraction of Alabama-based investors.

The Coindesk reports citing ASC that the advertisements said that Extrabit tokens EXB could be acquired for its half cost during the pre-ICO. 

"To participate in the pre-sale, the user must invest $20,000 and after the purchase, the tokens will be sent to MyEtherWallet within 48 hours," as the original advertisement read. 

Moreover,  Extrabit is said to state in its project documentation that it generates profit from BTC, ZEC and XMR mining, and investors with favorable EXB wallet balance can get quarterly earning power at 185%.


"As well as offering unregistered securities, the ASC said the project made "materially misleading" statements to defraud or deceive investors," Coindesk reported.

Notably,  Extrabit is not the single project within eyeshot of the ASC. For reference, the regulator has also sent a stop-work order to two more ICO projects – LEV and Platinum.

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29 May, 2018 14:32

← Israel takes measures against crypto-based money laundering

Israel authorities will reportedly put into force the first regulation for financial service providers and determination of the measures against money laundering via cryptos. With the new document signed by the Finance Minister of the country, all cryptocurrencies are considered as financial assets. As a result, the new ruling, once it comes into force beginning from June 1, will force all brokers, banks...

Israel takes measures against crypto-based money laundering

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