The Financial Industry Regulatory Authority, or Finra, the nongovernmental entity that regulates its member securities dealers, announced its first cryptocurrency-related disciplinary action Tuesday.

Finra charged former broker Timothy Ayre with securities fraud and the unlawful distribution of HempCoin, an unregistered cryptocurrency security.

From January 2013 through October 2016 Ayre allegedly issued and sold HempCoin (THC) to lure public investment into his “worthless public company” Rocky Mountain Ayre, which was traded over the counter under the ticker RMTN.

With cryptocurrency and marijuana so hot nowadays, it seems appropriate that Finra has issued an investor alert warning about cryptocurrency-related stock scams, while the Securities and Exchange Commission recently updated its own alert on fraudulent marijuana investments.

ThirtyK Staff
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