The California Department of Financial Protection and Innovation (DFPI) announced Tuesday 11 little-known cryptocurrency issued cease and desist orders against his firm for alleged misuse of client funds and violating state securities laws.
The regulator accused these companies, including the likes of Elevate Pass LLC and Metafi Yielders, for failing to provide the services they claimed.
California Authorities Claim These 11 Cryptocurrency Companies Are Running Ponzi schemes
“Each of the 11 entities allegedly offered and sold unqualified securities, of which ten allegedly made material misrepresentations and omissions to investors,” the regulator said in a press release.
The regulator said previous schemes targeting prospective investors had promised high-yield investment products in other industries such as oil and gas.
The regulatory agency continued its explanations and ponzi accusations on the subject as follows:
“All these organizations allegedly use their investor funds in a pyramid scheme to pay other investors so-called profits. In addition, each organization had a referral program that worked like a pyramid scheme.
Referral programs have had the effect they want by encouraging investors to create and post content on social media websites like YouTube, and by getting others to invest in these organizations.”
Here is the list of crypto organizations sued by Californian authorities:
- Cryptos OTC Trading Platform Limited d/b/a COTP – fake crypto asset trading platform
- Elevate Pass LLC – fake crypto asset advertising and trading platform
- GreenCorp Investment LLC – fake crypto asset trading platform
- Metafiyielders Pty Ltd d/b/a Metafi Yielders – fake DeFi platform
- Pegasus – fake crypto asset trading platform
- Polinur ME Limited – fake metaverse software development company
- Remabit – fake crypto asset trading platform
- Sity Trade – fake crypto asset trading platform
- Sytrex Trade – fake crypto asset and forex trading platform
- Vexam Limited – fake crypto asset trading platform
- World Over the Counter Limited d/b/a World OTC – fake crypto asset trading platform
Those sanctions are bitcoin and cryptocurrency lender Nexo, a day after it became involved in a lawsuit filed by a group of states alleging that its Earn product violated securities laws.
*Not investment advice.
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