The Prosecutor General’s office of South Carolina ordered the blockchain startup ShipChain to stop the spread of “unregistered investment contracts” in violation of the securities laws. It is reported by CoinDesk.
Representatives of division of the Commission on securities and exchange Commission (SEC) in South Carolina claim that a startup ShipChain under the guise of tokens offered investment contracts, which are “the only means of payment on the platform.”
“At all stages that are relevant to this order, Respondent ShipChain constantly offered opportunities to invest through its platform, as well as the corresponding token to the people of South Carolina. This was carried out through its own website and activities that were held throughout the state. None of the stages related to the above events, the defendant ShipChain was not registered as a broker-dealer. He also did not receive exemption from the registration”, — stated in the document Department.
ShipChain is positioning itself as a blockchain platform for supply chain management of goods. The platform is a member of the transport blockchain BITA Alliance, which includes such well-known companies like FedEx and JD.com.
Within 30 days of startup ShipChain may request a hearing on the case in the course of which its representatives will have to prove that the company is not in violation of the securities laws. Otherwise ShipChain will not be allowed to operate in or from South Carolina.
The start-up representatives in his Twitter account said that their lawyers are working on this problem and will provide the regulator response in the shortest possible time.
We are aware of the letter that was sent to us by the Attorney General of South Carolina. Rest assured that our lawyers are working on responding as fast as they can. We will keep you updated as soon as we have more information.
— ShipChain (@ShipChain) 22 may 2018 R.
On the background of this news the price of a token SHIP in a short time decreased almost two times:
ForkLog previously reported, the California startup Munchee returned funds to investors after the SEC found a number of violations during the ICO project.