A new ICO has not even gotten its traction before Vermont’s Department of Financial Regulation has ordered it to stop its token sale. The ICO is for LevelNet, which appears to be based out of Irving, California. However, the regulatory act against their sale has accused the ICO of
“violations related to the Vermont Uniform Securities Act.”
At the time of this article, according to the LevelNet website, there has been over $750,000 raised towards the ICO. However, the actions against the ICO is part of a bigger picture, cracking down on multiple investment opportunities in an effort called Operation Cryptoswap. There are multiple regulators across Canada and the United States that have banded together to stop new crypto scams from taking place. In fact, there are close to 70 inquiries that are presently on the database within the last few months, in a report from the North American Securities Administrators Association (NASAA).
The commissioner of the Vermont Department of Financial Regulation, Michael Pieciak, noted that the increase of Bitcoin investors has elicited the attention of Main Street investors in their crypto interest. In a statement, he also said,
“Although many are legitimate offerings that are fully compliant with law – many are note – and this order serves as a good reminder to exercise caution when considering investing in these products.”
LevelNet has yet to respond to requests for a comment on this order. To learn more about the ICO and the platform, visit https://levelnet.co/.