3 Crypto Scammers Got Cease & Desist Order
Three Crypto based websites promoting initial Coin Offering (ICO) in the state of North Dakota have been issued a cease-and-desist order, from the state’s Securities Department.
Scammers
The three companies which are the target of this cease and desist order have been identified as Crystal Token, Advertiza Holdings (Pty) Ltd., and Life Cross Coin aka Lifecrosscoin GmbH.
The commissioner in charge of the State’s Securities Department, Karen Tyler has made it known that these three offenders were involved in unauthorized Crypto related business practice which has raised many red flags.
Apart from running a financial project without obtaining proper licensing, the three companies were also found to be peddling products which have all the traits of a scam. The report made it known that products advertised are accompanied with false and unrealistic promises.
The North Dakota state security commissioner also believes that if left alone, these companies are set out to harms citizens of the state both psychologically and financially.
Karen further states that:
“In formulaic fashion, financial criminals are cashing in on the hype and excitement around blockchain, crypto assets, and ICOs – investors should be exceedingly cautious when considering a related investment,”
Individual Offences
The crimes committed by the three companies are similar but in grades.
The first company, Life Cross Coin, is said to be operating on another platform which has been associated with scamming practice in the past.
The suspicious platform which Life Cross Coin was running from, was said to be attracting investors with a token, which promises them unrealistic profits.
Crystal Token, on the other hand, had issued an ERC20 standard token referred to as CYL. The holders of this token are promised a return of 2% every 24 hours. On the website, no information has been provided in relations to who is behind the website.
Following in the same pattern as Crystal Token is Advertiza Holdings. In this case, no percentage was promised for the holder of the official token, TIZA. Based on what is written on the website, Investors will “make a profit from the appreciation” of the company’s returns.
Operation Cryptosweep
The North Dakota State Security Commissioner, Tyler as also made it known that the agency’s actions action against the local crypto offenders is in-cognizant to the ongoing Operation Cryptosweep. The target of the operation is to help initiate a drive against the crypto scams in the US and Canada.
