The California Department of Financial Protection and Innovation (DFPI) has cracked down on 11 cryptocurrency companies accused of violating California securities laws. Nine of the companies reportedly solicited funds from investors to trade cryptocurrencies on behalf of their customers. One of the accused firms touted a metaverse software development scheme, while another claimed to be a “decentralized financial (Defi) platform.”
11 Crypto Firms Targeted by California’s Department of Financial Protection and Innovation {16 Crypto Firms
California’s financial regulator DFPI is targeting crypto asset firms, and on Tuesday, the financial watchdog launched a “crackdown” against nearly a dozen digital currency-centric entities. issued cease and desist orders and restraining orders against the entities,” regulators announced on September 27. The state regulator further noted that these entities have been accused of operating pyramid schemes and Ponzi schemes.
The DFPI crackdown follows a cease-and-desist order sent Monday to crypto lender Nexo, which is accused of offering and selling “ineligible securities in the form of Earn Interest Product accounts” since “at least June 2020,” according to a regulatory Details of the authorities’ complaint are as follows Eleven cease and desist orders issued Tuesday detailing that the entities allegedly offered “classic examples of high-yield investment programs (HYIPs). “The 11 crypto firms named in the desist and refrain orders are.
- Cryptos OTC Trading Platform Limited d/b/a COTP
- Elevate Path LLC
- Metafiyielders Pty Ltd d/b/a Metafi Yielders
- Polynur ME Limited
- Limavit
- Citizen Trade
- Citrex Trade
Greencorp Investment LLC
During Tuesday’s announcement, DFPI Commissioner Clothilde Hewlett commented on the action taken against crypto companies accused of ponzi-like operations. Hewlett remarked, “DFPI continues to protect California consumers and investors from crypto fraud and scams.” The commissioner added, “These actions will not only protect consumers, but will ensure that California remains the premier place globally for responsible crypto asset companies to start and grow.”
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