Crypto: a Ponzi pyramid collapses - It's not Bitcoin pharaoh who wants! - SIMPLYSHAN.COM

Crypto: a Ponzi pyramid collapses – It’s not Bitcoin pharaoh who wants!

Ponzi scheme – The regulator Californian is attacking eleven companies that illegally offer crypto products to investors, and whose structure would be that of a Ponzi.

From cannabis to cryptocurrencies: the Californian regulator facing the Ponzi pyramids

The DFPI raids. In a statement dated September 27, the California Department of Financial Protection and Innovation announced the issuance of discontinuance and forbearance orders, against eleven crypto entities and decentralized finance. They are accused in particular of operating like a Ponzi scheme. They also allegedly violated state securities laws.

The companies affected by these measures are: Cryptos OTC Trading Platform Limited, Elevate Pass LLC, GreenCorp Investment LLC, Metafiyielders Pty Ltd, Pegasus, Polinur ME Limited, Remabit, Sity Trade and Sytrex Trade, Vexam Limited, and World Over the Counter Limited.

The California Department of Financial Protection and Innovation is cracking down on Ponzi schemes.

The regulator describes these companies as being “classic examples of high yield investment programs”. Their operating structure is similar to that of pyramid schemes.

To achieve their ends, these entities would have the habit of take advantage of the latest investment vehicles “opportunity”. They would have previously exploited oil, gas, and even cannabis investments.

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Metavers, decentralized crypto platforms and the other classic little lies

The department accuses the eleven companies of having offered and sold unqualified titles. Ten of them are said to have made false declarations or concealed important information from investors.

According to the DFPI, nine of these entities allegedly solicited funds from investors, telling them that they were going to trade cryptocurrencies on their behalf. One would have requested funding in cryptocurrencies for develop metaverse software. Another would have told investors that it was a decentralized financial platform.

The California Department of Financial Protection and Innovation issues serial cease and desist orders against cryptocurrency-related businesses. At the same time, the state governor exercised his right of veto over crypto licenses. The Californian regulator is attacking these eleven crypto companies. He had first attacked Nexo. The lending platform now finds itself in the crossfire of multiple regulators in different states, including New York and Washington.

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