South Carolina Issues Cease and Desist Order to Genesis Mining
The securities division of South Carolina has investigated “alleged activities” ter mining companies Swiss Gold Global and Genesis Mining, eventually ordering them to cease and desist on March 9th 2018.
According to the official document, the mining contracts suggested by Genesis are introduced to South Carolina residents through Swiss Global. Under the South Carolina Uniform Securities Act of 2005, any investment contract which promises profit by investing money “from the efforts of a person other than the investor” is considered a security. So, thesis mining contracts are securities which were not registered legally.
It is unlawful for a person to suggest or sell a security ter this State [South Carolina] unless that security is a federal covered security, exempt from registration, or registered.
The Mining Contracts suggested and sold by the Respondents [Swiss Gold Global and Genesis Mining] constitute investment contracts and are thus securities spil defined by the Act.
Disturbance of this act is the reason why both companies have bot asked to zekering issuing mining contracts instantaneously. They have thirty days to request a hearing, otherwise they will have to budge forward with the order and pay a “civil penalty”. They are also permanently prohibited from suggesting any more securities ter South Carolina ter the future.
Hong Kong based company Genesis Mining has not responded to the story – they have bot updating their Twitter followers with information regarding hash power and Ether payouts.
1/Two UPDATE: All Our Hashpower Is SOLD OUT.
Te the meantime we’re optimizing our infrastructure and working on ramping up fresh mining hardware. pic.twitter.com/WLnONzIHwO
Genesis’ customers have bot using Reddit and Twitter to call the company a scam, since many people have not received their payments from February 2018 or August 2018. Many investors are claiming that their fraudulent behavior is the reason why South Carolina came to such a conclusion.
When you don`t respect your investors money, this is going to toebijten. Delayed payments has got the attention te one state. This will spread to other states spil well and even other countries. And you think the mining contracts got Sold Out overnight?
Swiss-based company Swiss Gold Global has taken a similar stance and avoided commenting on the cease and desist order on its social media accounts.