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New Jersey Issues Cease And Desist Order To Bitstrade

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Authorities in New Jersey have issued a cease and desist order to a digital currency investment fund called 'Bitstrade.'

New Jersey Attorney General Gurbir S. Grewal and the Division of Consumer Affairs announced that the Bureau of Securities issued an emergency order to stop Bitstrade, an online cryptocurrency-related investment entity, from "fraudulently offering unregistered securities" in the state.

The Bureau found that Bitstrade is violating the State's Uniform Securities Law by offering investors an unregistered security in the form of an investment pool that purportedly guarantees up to 10 percent returns which accrue daily on investor funds. Bitstrade is not registered to sell securities in New Jersey.

Bitstrade is further violating the law by failing to disclose key material facts to prospective investors, the Bureau found.

The Attorney General said the Bureau is committed to protecting investors "as they navigate the uncharted and largely unregulated domain of cryptocurrency-related investments."

On its website Bitstrade offers the public an opportunity to invest in the "Bitstrade Investment," described as an investment pool whereby it collects "multiple lower value investments and grouping them into one single HUGE investment using those funds to trade on the stock market, and generate "outstanding returns." Bitstrade claims to share back a portion of its revenue to investors.

Sharon M. Joyce, Acting Director of the Division of Consumer Affairs, warned that Bitstrade's fraudulent offer is potentially more harmful for unsophisticated investors as cryptocurrency is virtually anonymous, so there is no recourse for investors to recoup their losses. She reminded investors to be extra vigilant about fully vetting what is being sold before investing with cryptocurrency.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

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