Bitstrade Exchange Sent Emergency Cease and Desist Order
Bitstrade an online cryptocurrency exchange was sent a cease and desist order to stop all trading operations. New Jersey regulators stated that Bitstrade was not licensed to provide securities within the state.
The release states:
“...[T]he Bureau found that Bitstrade is violating the State’s Uniform Securities Law by offering investors an unregistered security in the form of an investment pool that purportedly guarantees up to 10 percent returns which accrue daily on investor funds. Bitstrade is not registered to sell securities in New Jersey,”
The release also states:
“failing to disclose key material facts to prospective investors, including the names of its executive officers, the address of its principal office, information about Bitstrade's financial condition, the risks of the Bitstrade Investment, and how Bitstrade invests investors’ money, the Bureau found.”
The state have also stated that they violated laws by not providing key information regarding its operation.
Source: http://www.njconsumeraffairs.gov/News/Pages/02092018.aspx