North Dakota Securities Division Issues a Cease and Desist to BitConnect
The BitConnect scam continues to generate controversies. This time, the North Dakota Securities Division issued the company a cease and desist back on September 19. This is an action very similar to the one taken in Texas and North Carolina. North Dakota claims that BitConnect was engaged in securities fraud.
It is important to remember that BitConnect was a Ponzi scheme that collapsed at the beginning of the year. Since then, the company is involved in different legal procedures.
The respondents in North Dakota’s notice are BitConnect LTD, BitConnect International PLC and officers, directors, agents and employees. North Dakota explains hat BitConnect did not disclose material facts to investors.
They didn’t provide information about the principals of BitConnect and the location of their operations, information about the assets and liabilities of BitConnect, information about the proprietary and that the investments offered by the company were not properly registered. The activities BitConnect conducted had to be registered with state and federal regulators.
It is clear that this cease and desist comes very late, more than 9 months since BitConnect left the market. Nonetheless, India and the United States are working in order to dismantle all the Ponzi scheme behind BitConnect.
For example, some time ago, Indian authorities were able to identify two indians that were the founders of BitConnect. Apparently, the scheme started to work in the Asian country in order to launcher money. After it, it grew all over the world and attracted several investors from different countries.
At the moment, there are different SEC and FBI investigations underway which could provide more information about how BitConnect conducted their activities.