State of New Jersey Bureau of Securities has released a cease-and-desist order to an ICO endorsed by film actor Steven Seagal.

A few days ago, Steven Seagal, American actor, and martial arts expert praised a potentially imprecise cryptocurrency startup called Bitcoiin. Bitcoiin is an Ethereum based token that is not associated with Bitcoin but promotes itself as the “next generation of Bitcoin.” The startup raised $75 million after distributing tokens to investors on completing an ICO.

Cease and Desist Order

New Jersey Attorney General Gurbir S. Grewal and the Division of consumer affairs announced that Bureau of Securities had issued the Cease and Desist Order against Bitcoiin on March 07, 2018. In the Cease and Desist Order, the state’s Bureau of Securities ascertains that Bitcoiin is overstepping the State’s Securities Law.

The Bureau also determined that Bitcoiin failed to provide essential material certainties to potential investors. Including the identities, physical address of its business and the risk barriers allied with Bitcoiin investment.

The cease and desist order explains

“The Bitcoiin Websites do not disclose what expertise, if any, Steven Seagal has to ensure that the Bitcoiin investments are appropriate. Also in compliance with federal and state securities laws.”

Additionally, there are no disclosures as to the nature, scope, and amount of compensation. However, paid by Bitcoiin in exchange for Steven Seagal’s promotion of the Bitcoiin investments.

The reason for issuing the cease and desist order is to protect potential investors from the possible deceitful activities.

Attorney General Gurbir Grewal stated in a statement

“The Bureau’s actions today are a reminder to investors that while celebrity endorsements can add to the excitement and hype of cryptocurrency-related investments, they do not guarantee that investment is sound or even legal.”

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