Massachusetts regulators are cracking down on efforts to prevent sales of digital tokens and currencies advertised on Twitter, Reddit, YouTube and other social media platforms from launching.
Secretary of State William Galvin issued an order requiring five companies to stop offering ICOs, which regulators say are unregistered securities offerings. The order also requires these five companies, namely Mattervest Inc, Pink Ribbon ICO, Across Platforms Inc, Sparkco Inc and 18 Moons, to return to their owners all funds raised through pre-sales.
William Galvin warns investors that these ICOs are often used by firms seeking to avoid investor protection requirements under federal and state laws.
“I encourage every Massachusetts resident who is considering investing in these new ICOs to make sure that the people they are giving their hard-earned money to are operating legally,” Galvin said.
According to http://www.bostonglobe.com
You May Also Like
Gamers will raise $40 million for the filming of the film "Atari"
A biopic about Nolan Bushnell, creator of the cult Atari video games, will be filmed with funds from the ICO. Leonardo DiCaprio's production company plans to raise up to $40 million to finance the project.
25% of Pantera's ICO projects may turn out to be securities
This Thursday, Pantera Capital CEO Dan Morehead sent his clients a newsletter saying that 25% of their investments may qualify as securities that require registration.
