SEC and FINRA crack down on shady cryptocurrency companies, sets the record straight

The American financial regulatory bodies are not playing it down with Financial Industry Regulatory Authority [FINRA] and the Securities and Exchange Commission [SEC] both on Tuesday cracking down on three separate cryptocurrency scams.

12th September saw the FINRA cracking down on Timothy Ayer, the owner of ‘Rocky Mountain Ayre’, who was involved in various nefarious activities related to the trade of Hempcoin, a cryptocurrency. Ayre was involved in conning a lot of people by stating that Hempcoin was “the first minable coin backed by market securities”.

The owner of Rocky Mountain Ayre was also traversing rocky waters for not revealing the whereabouts of his asset storage and for cooking up numbers on the accounts sheet. Reports state that:

“Between 2016 and 2017, investors mined more than 81 million HempCoin, which they traded on the cryptocurrency exchanges C-Cex and Yobit.”

The FINRA has also stated that Timothy Ayre could be banned from being involved in any industry even remotely related to securities and digital asset exchanges.

The SEC, which has been in the news for the ETF rejections and other cryptocurrency reviews, has filed a case against Crypto Asset Management LP, a hedge fund. The securities organization revealed that the hedge fund has agreed to pay a fine of $200,000 on the infringement that they had sold funds to customers falsely claiming they were approved by the SEC.

Tim Enneking, Crypto Assets manager has stated that the company has fully cooperated with SEC investigations and has neither confirmed nor denied any allegations. He stated:

“There is nothing in the order about financial impropriety, no investors were harmed, and this has not impacted the funds’ operation or performance at all.”

Following the actions on the two cryptocurrency firms, the SEC also announced that TokenLot, an “ICO Superstore” had agreed to pay fines amounting to $471,000 for third-party infringements. The company’s founders, Lenny Kugel, and Eli Lewitt were involved in sales that saw them act as “an unregistered broker-dealer for the sale of digital tokens.”

All the decisions taken by the regulatory authorities point to the fact that scams and fraudulent activities will not be taken lightly after several people had complained about losing their savings.

Nightcoin, a Reddit user commented:

“ Atleast this will show people that crypto is not the wild wild west!”

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