The attorney General's office of South Carolina has ordered blockchain startup ShipChain to stop the spread of" unregistered investment contracts " that violate securities laws. It is reported by CoinDesk.

Representatives of the securities and exchange Commission (SEC) division in South Carolina argue that the ShipChain startup, under the guise of tokens, offered investment contracts that are "the only means of payment on the platform."

"At all stages that are relevant to this order, the defendant ShipChain has consistently offered opportunities to invest through its platform as well as the appropriate token to South Carolina residents. This was done through its own website and through activities that were conducted throughout the state. At none of the stages related to the events described above, the defendant ShipChain was registered as a broker-dealer. Also, he did not receive an exemption from such registration," the document says.

ShipChain is positioning itself as a blockchain platform for managing the supply chain of goods. The platform is a member of the BITA transport blockchain Alliance, which includes such well-known companies as FedEx and JD.com

Within 30 days, the ShipChain startup may request a hearing in the case, during which its representatives will have to prove that the company does not violate the securities legislation. Otherwise, ShipChain will be prohibited from operating in or out of South Carolina.

Representatives of the startup in their Twitter account reported that their lawyers are engaged in this problem and will provide the regulator with a response as soon as possible.

Against the background of this news, the price of the SHIP token fell almost twice in a short time: