Table of Contents
Introduction
The company called “My Trader Coin” made a bold promise that its customers would be able to invest in cryptocurrencies. The company said that it had a group of experienced traders on staff who would be in charge of managing the assets and making sure that the customers got good returns. On the other hand, in 2019, the Arizona Corporate Commission (ACC) gave My Trader Coin a stop-and-desist order, saying that the company was involved in fraudulent securities transactions. In this article, we’ll look into the claims that have been made against My Trader Coin, as well as the penalties that have been given to Now Mining, a related company that has also been accused of fraud.
The history of My Trader coin
My Trader Coin was a multi-level marketing company that promised investors that their investments in cryptocurrencies would earn them a lot of money. The company was called “My Trader Coin,” and it said that it had a team of very experienced traders who would invest customers’ bitcoins on their behalf. My Trader Coin advertised that it used a unique algorithm that would help the company make a lot of money on the cryptocurrency market.
John Souza, who said he had done a lot of work in the cryptocurrency business before, was the one who got the company started in 2018. Souza promoted the company on different social media sites and online discussion forums, saying that it was a good way for people who wanted to invest in cryptocurrencies to do so.
SEC Cease and Desist Order
In 2019, the Arizona Corporate Commission told My Trader Coin to stop what it was doing (ACC). The ACC said that the business was involved in fraud in the securities industry because it sold unregistered securities to its customers. The commission said that My Trader Coin was not registered to sell securities in Arizona and that the company had given its customers false and misleading information. The agency also said that the company had given its customers false information.
Restraining order against My Trader Coin
The ACC put out a restraining order against My Trader Coin, which said the company had to stop doing business in Arizona and pay a $1.1 million fine. Also, the commission ordered the company to make payments to its customers who had invested money in the business.
My Trader Coin denied the claims that the ACC made and said that it had nothing to do with any fraudulent stock trading. The company said that it wasn’t selling securities, but rather giving its customers opportunities to invest in other companies. Still, the ACC said there was no doubt that My Trader Coin was running scams and selling securities that had not been registered with the right authorities.
Currently Mining Fines for Fraudulent Securities Transactions
Now Mining was a company that worked with My Trader Coin. It also gave its customers the chance to invest in cryptocurrencies. The company said that it had a team of very experienced traders who would invest customers’ money in bitcoin on their behalf. On the other hand, the ACC filed an order to stop doing business with Now Mining in 2021, saying that the company was also involved in securities fraud during that time.
Now Mining sold unregistered securities
The commission says that Now Mining sold unregistered securities to its customers and made false and misleading claims about the investment opportunities it offered. The ACC said that Now Mining lied about being able to do what it said it could do, which was to give investors big returns on their bitcoin investments.
The ACC gave Now Mining a restraining order that said it had to stop all of its operations in Arizona and pay a $50,000 fine. Also, the commission ordered the company to make payments to its customers who had invested money in the business.
Conclusion
Both My Trader Coin and Now Mining were businesses that said investing in cryptocurrencies could bring in a lot of money. But both businesses have been accused of securities fraud for selling unregistered securities to customers and making false and misleading claims about the investment opportunities they offer. The Arizona Corporation Commission told both businesses to stop what they were doing and to stop doing it in the future. They also told both businesses to pay fines and compensate their customers. These examples are meant to show investors that they should be careful when investing in bitcoin and that they should do their homework before taking part in any opportunity to make money.
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