The securities Commission of Alabama (ASC) has ordered to stop distributing tokens mining company Extrabit within the state. This is stated in the official document of the office from may 2, according to Сoindesk.
ASC asserts that the token is on the website WSFA (NBC affiliate broadcaster licensed in the state capital of Montgomery) was the offer of unregistered securities, that is, the company is attracting investors from Alabama illegally. Advertising pointed out that investors may acquire a token Extrabit (EXB) with a 50% discount during pre-ICO, said the ASC. The ad is already removed from the site.
“To participate in the presale must invest 20 thousand dollars. After purchasing the tokens will be sent to MyEtherWallet within 48 hours”, — quotes Agency the original ad.
In addition, white paper project Extrabit indicates that the firm generates profit from mining bitcoins (BTC), zcash for (ZEC) and Monero (XMR), and the investors who support positive wallet balance EXB, you can count on a yield of 185% quarterly (740% per annum).
ASC asserts that the project will not only put up for sale unregistered securities, and made “significantly misleading” statements, to deceive and to attract investors, and need to stop presales.
According to officials, Extrabit is not the only ICO project, threatening the people of Alabama. The Google search bar on the website WSFA on request “selling tokens” provides more than 200 ads in the style of press releases ICO various projects.
The other two order by ASC from 2 and 18 may, respectively, relate to the termination of the ICO projects LEV and Platinum. As in the case with Extrabit, the Agency has accused them of selling unregistered securities in Alabama, through advertising with unrealistic promises about the probable return on investment to potential investors.
ASC’s solution followed the actions of their colleagues from Texas and new Jersey, which focused on cryptocurrency projects to attract investment at the local level, and took action against some of them.