The precarious ICO Bitcoiin, initially supported by the noted American actor Steven Seagal, has received red light form the US legal system. In particular, the ICO faced the issuance of a restraining order by the American state of New Jersey.
In the cease-and-desist order, released this week, the state’s Bureau of Securities claimed that Seagal-endorsed offering is vending unregistered securities to people in New Jersey. It is important to mention, that this particular state in the US considers cryptos as securities, but not like commodities as in some other states.
Why Does The State Not Trust Bitcoiin?
In the order, it is emphasized that the ICO, mentioned above, lacks specific information concerning people who back it up:
- directors, etc.
All of them are anonymous. Hence, it causes suspicion.
On top of that, the state officials stressed that Bitcoiin had never been authorized to sell securities in their region.
And these are not the only things that bother the Bureau. For example, the officials also stated that the ICO’s site does not prove by which means actor Seagal can guarantee that it is appropriate and legal to pile into Bitcoiin.
Furthermore, the project did not unveil how much, by which means and so on it paid for Seagal’s promotion of their product.
The officials concluded that the state is trying to calm down the craze over ICO investments, which can be easily boosted by celebrities when indeed they do not have anything behind them. Directly speaking, there are high risks of being scammed.
In February, Bitcoiin was headline news when Seagal publicly supported the project on his Twitter.
Previously, the ICO had stirred up allegations that it was a fraud project, which tried to deceive investors. It was believed that the deceit was supposed to be run thanks to Bitcoiin recalling the name of the original and first cryptocurrency in the world – bitcoin. However, later Bitcoiin reproached such statements openly.