Friday, May 14, 2021

ShipChain Told To Cease and Desist by South Carolina Attorney General

Must read

Supreme Court TCPA ATDS Ruling a Big Win for Telemarketers

On April 1, 2021, the U.S. Supreme Court issued a unanimous decision in the matter of Facebook, Inc. v. Duguid that is...

Is John Monarch Behind a $100 Million Bank Scam?

John Monarch was promoted Heavily by Affiliate Summit Founder Missy Ward, raising lots of questions. The Securities and Exchange commission delivered an early...

FTC Releases 2020 Annual Highlights

On March 25, 2021, the Federal Trade Commission released its 2020 Annual Highlights, emphasizing the agency’s ongoing efforts to protect consumers. “Despite the challenges...

Marketing Fraud Continues to Grow in 2021, and Ad Companies Are Clueless

A new report from White Ops demonstrates that marketing fraud is growing, but that many in the online advertising space may not...
Pesach Lattin
Pesach Lattinhttp://pacevegas.com
Pesach "Pace" Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.

On May 21, blockchain startup ShipChain was issued a cease-and-desist order from the South Carolina Attorney General’s Office for violating the state’s securities statutes.

According the official notice, the company continuously offered investment opportunities to residents of South Carolina on its platform through its corresponding tokens, both on its website and at in-person events in South Carolina. ShipChain was allegedly unregistered with the Securities Division of the Office of the Attorney General of the State of South Carolina as a broker-dealer. The order stated:

“At no time relevant to the events stated herein was Respondent ShipChain registered with the Division as a broker-dealer, and no exemption from registration has been claimed by Respondent ShipChain… At no time relevant to the events stated herein were the securities at issue registered with the Division or federal covered securities, and no exemption from registration has been claimed by the Respondent.”

ShipChain is an Ethereum-based platform, which provides shipment tracking services. According to its website, the company’s customers are allowed to pay either directly in tokens they hold, or buy tokens from ShipChain for booking freight.

The order requested the company to desist “transacting business” in the state. It also says that the company is “permanently barred from participating in any aspect of the securities industry in or from the State of South Carolina.” ShipChain has 30 days to request a hearing on the matter.

Earlier this month, the Texas State Security Board issued a cease-and-desist order to a Bitcoin (BTC) investment company that reportedly offered unregistered securities and made deceiving statements that mislead investors. The order stated that the company promoted different BTC investments programs guaranteeing “100% profits in 21 days” with no risk involved.

Yesterday, US and Canadian state and provincial securities regulators initiated a slew of investigations into suspicious crypto businesses. Securities regulators reportedly warned as many as 35 companies about violations of state securities laws with some cases resulting in cease-and-desist actions.

- Advertisement -

More articles

What's your opinion?

- Advertisement -

Latest article

Supreme Court TCPA ATDS Ruling a Big Win for Telemarketers

On April 1, 2021, the U.S. Supreme Court issued a unanimous decision in the matter of Facebook, Inc. v. Duguid that is...

Is John Monarch Behind a $100 Million Bank Scam?

John Monarch was promoted Heavily by Affiliate Summit Founder Missy Ward, raising lots of questions. The Securities and Exchange commission delivered an early...

FTC Releases 2020 Annual Highlights

On March 25, 2021, the Federal Trade Commission released its 2020 Annual Highlights, emphasizing the agency’s ongoing efforts to protect consumers. “Despite the challenges...

Marketing Fraud Continues to Grow in 2021, and Ad Companies Are Clueless

A new report from White Ops demonstrates that marketing fraud is growing, but that many in the online advertising space may not...

FTC Order Requires Company and Its Owner to Pay $146,249, and Stop Making Deceptive ‘Made in USA’ Claims

The Federal Trade Commission recently announced that a company that sells customizable promotional products such as wristbands, lanyards, temporary tattoos, and buttons,...