The state regulator in Texas is in our crypto news today after the announcement that it has reached an agreement with four crypto companies that were previously accused of selling unregistered securities according to a document that was released on February 21.
The four companies, Mintage Mining, BC Holdings and Investments, Social Membership Network Holding and Nui social agreed to stop offering crypto tokens to investors. The respondents will also pay an administrative fine of $25,000.
Last year in July, the Texas State Securities Board (SSB) accused the companies after it identified token offerings that didn’t go under the definition of securities according to the local legislation. The order from the regulator confirms this information and requires no further activity to take place until they become suitable to be licensed and not after all documents are collected.
The order also constitutes the recent victory of the Texas State Securities Board on taking down unregistered securities sales that are ongoing in the crypto sectors. As previously reported, bad actors in the crypto space are always under scrutiny and always under bigger operations run by the United States Securities and Exchange Commission.
At the start of February, the SSB revealed to have issued about 16 orders to industry players that were suspected of being scams. For example, BitConnect was included in the 16 orders as a Ponzi scheme which is not even under FBI operation.
The regulator stated:
“The orders cited a total of 60 individuals and entities. None of the individuals or firms were registered to sell securities in Texas.”
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