New Jersey regulators have sent a cease-and-desist letter to an online cryptocurrency investment site, alleging that the company is fraudulently offering securities in the state.
The state's Bureau of Securities, along with the New Jersey Attorney General, said Friday morning that it was moving to prevent Bitstrade from making further offerings, which officials said failed to disclose information about its physical location, financial health or the names of its senior employees.
boasts on its website that it is "a registered United States company providing Private Banking service to the masses," though the address listed at the top is the same as Blue Razor, a domain registration company based in Scottsdale, Arizona. A message sent through Bitstrade's online message system was not immediately returned at press time.
According to the release, Bitstrade is not currently registered to offer securities in the state.
Attorney General Gurbir Grewal said in a statement:
Friday's developments continue a recent trend of state regulators issuing cease-and-desist letters to suspected cryptocurrency scams.
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