It appears Texas might soon lose its enviable reputation as the state with the most rigorous cryptocurrency securities fraud regulator. This follows the ‘Cease and Desist’ issue Power Mining Pool has been slapped with in North Carolina on March 2nd.
Last September, BehindMLM did an insightful review that served as a warning. According to the review, the business model of Power Mining Pool as well as their stealthily hidden “cryptocurrency trading and mining,” directed to a business model similar to that of a Ponzi scheme. BehindMLM, therefore, resolved that indeed it was a 50 EUR in and 70 EUR out Ponzi scheme!
The North Carolina Securities Division seems to have agreed with the BehindMLM review and eventually decided to investigate Power Mining Pool. The Securities Division positively confirmed that indeed Power Mining Pool was owned by two individuals named Andrew and Mike Conti.
Power Mining Pool, Crypto Mining MLM, Gets C&D
According to the North Carolina Securities Division, Power Mining Pool’s nature of business (mining pool shares) classifies it as a security. But in a bizarre twist of events, neither the business nor its proponents had any documents showing that it had been registered to serve as a securities firm. And that’s why the authorities found their operations in North Carolina unlawful and blatant violation of the Securities Act.
The Cease and Desist issue took effect owing to the business and its directors’ failure to fully disclose the following:
- The real identity of the owners of Power Mining Pool, as well as, the real location where their operations and management were based on.
- Critical information regarding their assets and liabilities plus any further information that would have indicated the means by which Power Mining Pool would use to offer returns.
- Information regarding the proof of the existence of the facility, tools, and instruments used including the “mining rigs” and where they mine, mining records, hash-rates, and maybe any risk factors.
- Details on the alleged trading pool, information of their trading records, evidence of the existence of the exchange and, of course, any prevailing risks that the trading faced.
- Operating a mining pool shares or securities business with unregistered administrator or any other governing regulator.
- That only registered dealers or agents could be compensated for referrals or sale of securities.
- The fact that the affiliates getting paid for each referred individual operated knowing that the business was running illegally and in contravention of the Securities Act.
What Next For Power Mining Pool In North Carolina
Following the Cease and Desist, the state Securities Board wants Power Mining Pool, and all its affiliates exit the state and end all its operations altogether. It will, therefore, have to stop all its transactions in line with the directive or challenge the directive.
If it chooses to challenge the order, Power Mining Pool will have to do so within 21 days from the day of receiving the Cease and Desist. If its owners and their attorneys fail to challenge it or lose the case, the order will stand and be permanent.