Bitconnect News

The Commissioner of the Texas State Securities Board filed emergency termination in order to stop the investment programs offered by England-based cryptocurrency platform, BitConnect.

Travis J. Iles, Securities Commissioner, who filed the order says, Bitconnect’s allocation of its own token, Bitconnect Coins, as well as other cryptocurrency-related investment services falls under the classification of securities. Anyhow, Bitconnect failed to register as required under the Texas Securities Act and State Securities Board Rules and Regulations.

However, it is unregistered to sell securities in the states of Texas, the commission informed that the sales agents of Bitconnect were targetting Texas via internet advertising, social media campaigns, and marketplaces.

The regulatory actions come in response to BitConnect’spurpose to go through a token offering-based crowdfunding initiative, or Initial Coin Offerings (ICOs).

Bitconnect’s solicitation activities include claims that investors will receive annual returns in excess of 100 percent, according to the commissioner.

The Board’s official site wrote in a statement: