Karen Tyler, commissioner of the North Dakota Securities Department, has issued cease and desist orders against three initial coin offering projects she claims are operating illegally in the state.
In her news release she said Crystal Token, Life Cross Coin and Advertiza Holdings had placed fraudulent statements on their websites with claims of excessively high returns, insufficient disclosures and misrepresentation of facts.
The agency said none of the firms are registered to offer securities in the state. “The continued exploitation of the cryptocurrency ecosystem by financial criminals is a significant threat to Main Street investors,” Tyler said in the release. “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.”