Categories: Ethereum

New Jersey’s Pocket Inns Facing Unregistered Securities Lawsuit

Click here to view original web page at www.livebitcoinnews.com

A cryptocurrency platform in New Jersey is facing a massive lawsuit over what state regulators have deemed illegal and unregistered sales. Pocket Inns Inc., located in West Windsor, New Jersey, sough to raise an alleged $46 million through sales of its new cryptocurrency token known as PINNS.

Pocket Inns Is in Big Trouble

The New Jersey Bureau of Securities is now filing suit against the company alleging that it sold unregistered securities to users. The sales occurred between the firm and 217 potential investors, two of which were in New Jersey, on the dates of January 15 through 18 in 2018. The company was advertising PINNS to customers in exchange for Ethereum tokens, which at the time were trading for nearly $1,400 each.

The lawsuit is seeking damages brought on by the sale of the unregistered tokens. It is also accounting for legal fees and asking that restitution be paid to any investors involved, which the New Jersey state regulator alleges were scammed into accepting unlicensed monies. Attorney General Gurbir S. Grewal issued a statement regarding the suit, explaining:

Our securities laws apply to anyone offering or selling securities in this state, regardless of whether those securities are purchased with U.S. dollars or virtual currencies, and regardless of whether they are distributed in certificated form or through blockchain technology… The lawsuit we filed makes it clear that individuals selling cryptocurrency-related investment products in New Jersey must comply with the law or face serious consequences.

According to legal documents, Pocket Inns. Inc. used some of the transaction funds to develop new branches of its business, including research, engineering, sales and marketing. While this is allowed in the state of New Jersey, the company failed to attain proof that its customers each had a net worth of approximately $1 million each or an annual income of at least $200,000. This is required in New Jersey if a company is not going to be subjected to registration laws.

Thus far, only 11 customers have been able to substantiate these claims, leaving the finances of 206 customers unaccounted for.

Why Disobeying the Rules Leads to Further Problems

Paul Rodriguez, acting director of the state Division of Consumer Affairs, released a statement mentioning:

By failing to take reasonable steps to verify that purchases were accredited investors capable of bearing the increased risks associated with unregistered securities, the defendants violated the law and exposed investors to financial losses that could have been devastating… We’re reminding investors to be extra vigilant about fully vetting what is being sold, especially before investing with cryptocurrency.

Issues like these have come up in the past, and the Securities and Exchange Commission (SEC) has been on the tails of several businesses that have sought to sell unregistered securities to investors. Among the most recent cases was one involving the Gladius Network in late February of this year.

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

G7 To Investigate Bitcoin{BTC} And Other CryptoCurrencies

Source: Wikimedia The G7 meets next week to investigate regulations for Bitcoin and other cryptocurrencies. G7 To Discuss Bitcoin Next… Read More

48 mins ago

US Treasury Blackballs Bitcoin Addresses of Chinese Drug Kingpins

The US Treasury is blacklisting specific bitcoin addresses related to Chinese druglords. | Source: Shutterstock By CCN Markets : The… Read More

48 mins ago

Modex: How blockchain can solve the fake news problem

LONDON, UK - Media OutReach - 22 August 2019 -When Satoshi Nakamoto solved the Byzantine General's problem in 2008 by… Read More

48 mins ago

Unlocking the future of blockchain innovation with privacy-preserving technologies

The origins of blockchain as many are familiar with it today can be traced back to the Bitcoin whitepaper ,… Read More

48 mins ago

Maerki Baumann Why a Swiss private bank is embracing blockchain

Maerki Baumann decided it could not sit still and hope for the best. At a time of increasing pressure on… Read More

49 mins ago

World Bank picks up millions in latest blockchain bond move

In August of last year, the World Bank and the Commonwealth Bank of Australia (CBA) announced a new bond alternative… Read More

49 mins ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More