In line with a recent announcement published, the companies atthe middleof the orders of cease and refrainareCrystal Token [CYL], Advertiza Holdings (Pty) Ltd., and Life Cross Coin a/k/a LifecrosscoinGmbH. As per the statement, Crystal Token [CYL] isanevolutionary multi-utility Ethereum based ERC-20 token, thatguaranteesearnings upto 2%per day. The token’sweb siteallegedly containsdishonest claims of “excessive unsubstantiated” rates ofofferingson the investment of investors. Even Crystal Token [CYL]isn’tlicensed as perU.S Securities and Exchange Commission [SEC]to sell securities in the country.
Advertiza Holdings offers cryptocurrencyreferred to asTizacoin [TIZA] and claims that holders can expectto formatake advantage ofthe appreciation ofthe worthof Tizacoin [TIZA] tokens. That,perU.S Securities and Exchange Commission [SEC], indicates that the token’s description as a utility tokenis wrong, and is instead a security.
According to the North Dakota Securities Department, Advertizaincorrectlyclaims to be licensed under the U.S Securities and Exchange Commission [SEC] andis additionallynot registered to sell securities inthe country.
The 3rd firm, Life Cross Coin, operatesan internet sitefrom a Berlin addressrelated to ransomware, malware, and identity fraud, and offers a cryptocurrencyreferred to asLife Cross Coin [LICO]. The firm claims that the tokenare going to bespent on charity,whereasinvestors allegedly get a hugeincomeout of the investors investment. Life Cross Coin [LICO]isn’tregistered inthe country, and itsweb sitereportedly containsunsupported claims and lacking misrepresentations.
Securities Commissioner ‘Karen Tyler’ while added more stated:
“Thecontinuingexploitation of the cryptocurrencyschemeby criminalsmay be avitalthreat to Main Street investors. Inconventionalfashion, criminalsarecashing in on thepackagingand excitement around the blockchain technology, crypto assets, and ICOs – investorsought tobeextremelycautiousonce considering an investment.”
This orderis a part of seriesof the ‘Operation Cryptosweep’, a coordinated multi-jurisdiction investigation intoprobablyillicitcrypto investment programs, that involvesfortyU.S and Canadian state and provincial securities regulators. Since after the initiative’s launch from the month of May , investigators discovered concerningthirty thousand crypto-related domain names and conducted overtwo hundredinvestigations of ICOs.
Even earlier in May, the Colorado Securities Commissioner launched probes into2corporations— California-based LindaHealthcareCorporation along with Broad Investments LLC which is Washington base for encouraging illicit crypto currencies and ICOs.