Tennessee Securities Team Alerts Investors to Internet Crypto Company ‘Bitcoiin’
NASHVILLE – The Tennessee Department of Commerce & Insurance (TDCI) Securities Division is alerting Tennessee consumers today of actions taken by the State of New Jersey against the Internet cryptocurrency company Bitcoiin a/k/a Bitcoiin B2G (“Bitcoiin”) that is alleged to have promoted the sale of unregistered securities. (Note: Bitcoiin should not be confused with nor is it affiliated with Bitcoin.)
According to a cease and desist order filed March 7, 2018, by the Bureau of Securities of the State of New Jersey, Bitcoiin is offering “investments to the general public, including the residents of New Jersey in its Bitcoiin ICO and ‘Bitcoiin Staking Program’” through a website that “projects that each B2G will be worth $388 by December 2018.” The filing ordered the respondents to cease and desist from offering for sale any securities unless, and until, such securities have been registered, acting as broker-dealers or agents in New Jersey until properly registered, making material misstatements of fact, and violating any other securities law or provision regarding the sale of any security in New Jersey.
The order found that Bitcoiin offered securities, as defined by N.J.S.A. 49: 3-49(m), through their website: www.bitcoiin.com, in violation of the New Jersey Uniform Securities Law. The Order to Cease and Desist gives respondents 15 days in which to request a hearing. If no such request is made during that time, the Order to Cease and Desist shall become final. The order is available here.
None of the companies, promoters, or investments related to Bitcoiin are registered with the Tennessee Department of Commerce & Insurance’s (“TDCI”) Securities Division.
The Department again reminds Tennesseans to be cautious when investing in cryptocurrencies. Cryptocurrencies are a medium of exchange that are created and stored electronically in the blockchain, a distributed public database that keeps a permanent record of digital transactions. Current common cryptocurrencies include Bitcoin, Ethereum and Litecoin. Unlike traditional currency, these alternatives have no physical form and typically are not backed by tangible assets. They are not insured or controlled by a central bank or other governmental authority, cannot always be exchanged for other commodities, and are subject to little or no regulation.
“Rushing into an investment that you don’t fully understand can be bad for your bottom line,” said TDCI Assistant Commissioner Frank Borger-Gilligan. “We encourage Tennesseans to always conduct thorough research to learn the risks associated with the investments they are considering.”
In order to help protect consumers, TDCI reminds investors to keep watch for common “red flags” of investment fraud:
- “Guaranteed” high investment returns. There is no such thing as guaranteed investment returns, and there is no guarantee that the cryptocurrency will increase in value. Be wary of anyone who promises a high rate of return with little or no risk.
- Unsolicited offers. An unsolicited sales pitch may be part of a fraudulent investment scheme. Cryptocurrency investment opportunities are promoted aggressively through social media. Be very wary of an unsolicited communication—meaning you didn’t ask for it and don’t know the sender—about an investment opportunity.
- Sounds too good to be true. If the project sounds too good to be true, it probably is. Watch out for exaggerated claims about the project’s future success.
- Pressure to buy immediately.
Tennesseans who have invested with Bitcoiin are urged to contact TDCI by phone at (615) 741-5900 or by email at email@example.com.