Nui Responds to Cease and Desist by Restructuring
The Texas Securities Board issued a cease and desist order against Nui for its securities fraud issues. In response to the order, Nui announced restructuring of its affiliate offering. Although the platform’s CEO Darren Olayan hasn’t directly responded to the order, he claimed beforehand that there was no such securities regulation in place preventing the company’s actions.
In its allegation, the Texas Securities Board argued that Nui Corporate was offering unregistered securities. Casey Combden, Nui’s front affiliate, also received his own cease and desist order from the Ontario Securities Commission.
To address the order, Nui planned restructuring and is offering a new compensation plan and affiliate group registration options. According to Jim Pare, another affiliate:
“the number one thing for us is being compliant throughout the entire United States. What happened in the last couple of days is we took what we were projecting to do in six months and jammed it into this week.”
Essentially, Pare stated that the company had already planned a compliance strategy, but now due to the order, it is executing its strategy much earlier and faster than expected.
To comply, the platform is turning its affiliates into active members who receive mintage mining by bundling several memberships. Further affiliates will receive a certain membership level by paying the mintage mining fee. The trouble is, this may not be able to overcome the compliance issues because mintage mining passive ROI payments are irrelevant. At issue are derivatives passively earned through mintage mining, as it is considered a security.
The company has until August 11th to challenge the order.