The U.S. state of Alabama securities regulator has issued a cease and desist order against Acoin Trading and 96 other cryptocurrency websites. Crypto-investment programs promise “excessive returns”, report “fictitious account values” and impose “undisclosed fees”.
U.S. state regulator orders closure of 97 crypto trading websites
The Alabama Securities Commission announced Thursday that it has issued a cease and desist order against 97 cryptocurrency trading websites. The announcement states:
The Alabama Securities Commission (ASC) has issued a cease and desist order against Sir Philip Zuka, owner of Acoin Trading and 96 other fraudulent crypto trading platforms.
“The order is the result of Zuka’s failure to register its investment products and not register as an investment advisor,” the regulator detailed, adding:
Zuka is breaking Alabama securities laws by promising excessive returns, declaring fictitious account values, and imposing undisclosed fees on an Alabama investor.
The regulator explained that an Alabama investor discovered Acoin Trading online and was intrigued by how the program could make investors eight times the initial investment in just one week.
“Therefore, the investor took part in a demonstration and invested around $ 10,000 worth of bitcoin, which was deposited into a wallet provided on the Acoin Trading website,” the ASC noted.
However, when he wanted to withdraw his money, Zuka demanded an additional payment before any funds could be withdrawn. The investor quickly realized that the investment was a scam; he immediately filed a complaint with the ASC and stopped all communication with Zuka and his trading platform.
However, the regulator said the Alabama resident lost the entire investment.
According to the order, the owner of Acoin Trading was a user of Namecheap Inc. named Sir Philip Zuka, or Sirzuka. Order details:
“Sirzuka” has created 281 websites through Namecheap Inc. Out of the 281 websites, 127 of them work and 96 of them work the same as Acoin Trading. The IP addresses were from Nigeria, Europe or the United States.
What do you think about the Alabama Securities Regulator shutting down 97 cryptocurrency trading websites? Let us know in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, nor a recommendation or endorsement of any product, service or business. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, good or service mentioned in this article.
