Vermont Regulators Hit ICO With Cease-and-Desist Notice

Stan Higgins
Jun 4, 2018 at 17:45 UTC
news

A company behind an ongoing initial coin offering (ICO) has been issued a cease-and-desist notice from the U.S. state of Vermont.

The Vermont Department of Financial Regulation said Monday that it was sending the cease-and-desist to LevelNet, which according to its website is based in Irving, California. Officials accused the firm of “violations related to the Vermont Uniform Securities Act” and ordered it to stop selling tokens tied to its cybersecurity-related platform.

Per the LevelNet website, approximately $752,000 has been raised thus far during the sale. An emailed request for comment was not returned by press time.

The action came as part of a broader crackdown on investment schemes involving cryptocurrencies known as Operation Cryptosweep. As previously reported by CoinDesk, a range of securities regulators in the United States and Canada have coordinated their efforts in a bid to stifle token sale and cryptocurrency scams.

According to the North American Securities Administrators Association (NASAA), “nearly 70” on inquiries have been launched in recent months.

“The rapid rise of Bitcoin has made Main Street investors aware and interested in cryptocurrencies and ICOs,” Michael Pieciak, a commissioner for the Vermont Department of Financial Regulation, said in a statement, adding:

“Although many are legitimate offerings that are fully compliant with law – many are not – and this order serves as a good reminder to exercise caution when considering investing in these products.”

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