An announcement was made by The New Jersey Securities Bureau prohibiting two emergency orders to stop a fraudulent offering by an online cryptocurrency-related investment entity. New Jersey Issues Stop Order to Two ICO’s via Operation Cryptosweep.
The Bureau of Securities alleges that both ICOs offered fraudulent security products as part of “Operation Cryptosweep.”
Zoptax sought between $500,000 and $3.4 million for its Zoptax Coins, while UNOcall issued tokens and investments in its staking protocol that provided daily interest rates ranging from 0.18% to 0.88%.
Zoptax and UNOcall were not registered with the Bureau to be sold in New Jersey, nor exempt from registration. The Bureau discovered that Zoptax further breached the law by making substantially incorrect and misleading statements and/or omitting material facts relating to its securities offering and selling.
“With the price of Bitcoin increasing over the last few months and the announcement of Facebook’s Libra, there has been a sharp increase in public solicitations to invest in crypto-related products that appear on their face to be suspect,” said Bureau Chief Gerold.
“The two actions today are a reminder to investors that investing in cryptocurrencies or crypto-related products have significant risks and investors must do their diligence before investing.”
Operation Cryptosweep has had 85 pending or completed cases, 330 investigations or investigations, and eight enforcement actions, including Zoptax and UNOcall, since January 2019.