ShipChain Hit with Cease & Desist in South Carolina, SHIP Token Drops 40%
ShipChain, a blockchain logistics and transport company that is having an Initial Coin Offering, has just received a cease and desist order from the Securities Commissioner of South Carolina. A document on the South Carolina Attorney General site has ordered the company to cease all of its activities in American soil.
This is part of an operation created by the North American Securities Administrators Association (NASAA) announced just yesterday called Operation Cryptosweep. The order states that ShipChain has targeted American users and has an address in Delaware. The problems come from the fact that the ICO that was being held by the company was not legal under the US legislation.
According to the document, the company did not contact any kind of broker and did not ask for registration or for the buyers to be accredited investors before they buy assets (tokens) from the company.
The Administrative Order to Cease and Desist
ShipChain was permanently barred from participating in any aspect of the securities industry in the North Carolina state and all the affiliates and employees of the company received a cease and desist order.
Failing to do so, according to the document, the company has 30 days to respond, comply or to ask for a hearing. The document was signed by Wanda Ealy, South Carolina Attorney General's Office Securities Division – which anyone can reach at (803) 734-4731 if have questions or concerns regarding the Shipchain C&D order issuance.
NASAA Operation Cryptosweep
ShipChain was permanently shut as part of a governmental operation called Operation Cryptosweep, which has been enforced by the North American Securities Administrators Association (NASAA). Many states are uniting against fraudulent ICOs.
More than 70 inquiries and investigations have been done up until now and the main objective of the operation is to track down scammers and unregulated enterprises so the investors are not harmed by the companies acting outside of the law.
Should they set sail and prevail, they would likely be winning a battle for many at the same time should they stand tall and raise the tide of all sinking ICO ships included. They were not the only ones included on a long laundry list of potential bad actors since this task force operation was assembled.