Do you know who is the most active regulators of cryptocurrencies in the present time? It’s Texas. Another crypto leading platform, DavorCoin has been hit by Texas cease-and-desist.
The state’s securities board released its fourth emergency cease-and-desist order on Friday, the order comes just over a month on a company of cryptocurrency.
The Securities Commissioner Travis J. Iles says in the fourth emergency cease-and-desist order on Friday, the crypto leading platform, DavorCoin is offering unregistered securities for sale and misleading the people which are violating sections of the Texas Securities Act.
However, this is not the first time the Texas State Securities Board issued emergency cease-and-desist orders, the board previously released the orders on:
- January 24, 2018: The board issued an order against Hong Kong-based company, selling a r2b coin, “promising investors that the digital currency will soon be one of the world’s most valuable.”
- January 4, 2018: The board issued an order against BitConnect, “soliciting investors for cryptocurrency-based programs that the company claims will deliver annualized returns of 100% or more.”
- December 20, 2017: The board issued the first emergency cease-and-desist order against USI-Tech Limited, “an overseas firm that is promising low-risk, triple-digit returns from investments tied to Bitcoin mining.”
Now, DavorCoin has also joined the list of crypto leading platforms that have been hit by Texas cease-and-desist orders.
In addition, when the board issued such order against BitConnect, DavorCoin took Twitter on January 16 and wrote, “this does not change anything for us except that now Davor is the number one lending platform in the world !!”
The crypto leading platform claimed that the company pays interest on deposits’ of customers of its digital currency, the digital coin that can only be bought using bitcoin.
According to CoinMarketCap, that digital coin has decreased in value by over three-fourths of its value since Thursday. On Monday, that coin was trading around $1.60.
According to the director of the enforcement division at the Texas State Securities Board, Joseph Rotunda, orders such as the Texas cease-and-desist follows a nearly one-month undercover investigation of investment programs of cryptocurrency.
Rotunda said, “We confirmed our suspicion that they were being marketed toward retirees.” Adding, “They were not disclosing the information that needs to be disclosed to an investor.”