New Jersey’s Bureau of Securities recently released two emergency orders to stop two initial coin offerings (ICO) on grounds that the offered tokens are unregistered and considered fraudulent.
The stop order was announced on August 7 by the state’s Office of the Attorney General (OAG). The two ICOS were set to be conducted by Unocall and Zoptax.
According to the OAG report, Zoptax was offering Zoptax Coins and the ICO would be held online. The company’s website revealed that the ICO had a $3.4 million hard cap goal and a soft cap aim of $500,000.
New Jersey’s Securities Bureau also claimed that aside from the coins being unregistered, Zoptax also gave misleading statements and neglected to reveal material facts in conjunction with the offer and sale of its coins.
The company reportedly neglected to reveal vital location details like Zoptax’s principal business location, physical address, details on the people behind the company, as well as how the ICO funds would be allocated.
The state’s Bureau of Securities also found Unocall to be guilty of misleading potential investors in the same way. The company’s ICO was also set to be conducted on its website. It was also offering a “Staking Program” that reportedly guarantees an interest rate of 0.18% to 0.88% daily.
The stop orders from the Bureau of Securities is part of its Operation Cryptosweep. The program is described as an “international crackdown” on fraudulent ICOs and other investment schemes related to cryptocurrencies. It was launched in 2018 by the North American Securities Administrators Association (NASAA) and has already done more than 200 ICO-connected investigations.