New Jersey has issued a cease-and-desist order to an initial coin offering (ICO) by cryptocurrency investment company Bitcoiin.
In an order issued on Wednesday, the New Jersey Bureau of Securities alleged that Bitcoiin is selling unregistered securities to investors of the US state.
Bitcoiin is engaging in fraud in connection with the offer for sale of securities, the cease-and-desist order says.
It noted that other than stating that Bitcoiin’s executive offices are located in Asia and providing a contact name of “John Williams,” no additional contact information is available.
Seeking to capitalize on the popularity of Bitcoin, the cryptocurrency exchange Bitcoiin offers its own cryptocurrency and other crypto-related investments through its website, social media, and its purported official brand ambassador, actor Steven Seagal.
The project made headlines last month after the action hero of the 1990s publicly endorsed the cryptocurrency offering through his official Twitter account.
Christopher W. Gerold, Chief of the New Jersey Bureau of Securities, alleged that Bitcoiin is fraudulently offering unregistered securities in violation of the Securities Law.
Bitcoiin announced that it would be conducting an Initial Coin Offering of its cryptocurrency B2G starting on March 26, with a pre-ICO period of sixty days.
The document highlights the lack of concrete information about those behind the project, saying, “Bitcoiin’s developers, officers, managers, employees, controllers, and/or directors are anonymous,” though it highlights the endorsement by Seagal.