NEWARK — The Bureau of Securities recently issued an emergency cease and desist order that prohibits the online cryptocurrency-related investment entity, Bitstrade, from continuing to sell unregistered securities in New Jersey.
New Jersey Attorney General Gurbir Grewal and the Division of Consumer Affairs announced the bureau's recent order, which says Bitstrade is in violation of New Jersey's Uniform Securities Law.
According to the cease and desist order, Bitstrade, which is not registered to sell securities in the state, offered investors an unregistered security as part of an investment pool supposedly guaranteeing up to a 10 percent return accrued daily on investor funds.
“The bureau’s action reinforces our commitment to protecting investors as they navigate the uncharted and largely unregulated domain of cryptocurrency-related investments,” Grewal said in a news release.
“We want to make sure that investors tempted to cash in on the cryptocurrency rage aren’t being lured into sending funds to an anonymous internet entity without knowing where the funds are going or how they’ll be used."
Bitstrade also violated the Uniform Securities Law by not disclosing important material facts to prospective investors such as its executive officers, the company's principal office address, its financial condition, the risks of its investments and how the company invests its investors' money, according to the bureau.