As indicated by a news discharge distributed on the controller's site, BitConnect was asserting to offer tokens with 100% yearly returns, which the TSSB decided qualify as unregistered securities.
Also, BitConnect was searching for selection representatives to advance its token, which the Texas office decided qualify as specialists who are not enrolled to offer securities in Texas.
Deals specialists were "focusing on Texas occupants," and additionally inhabitants of different states, the TSSB said.
BitConnect reported on Jan. 1 that it would dispatch an underlying coin offering (ICO) called BitConnectx on Jan. 10. Furthermore, prominently, the startup had led a past token deal in 2016.
The Texas arrange, however originating from a state-level specialist, features another occasion where controllers in the U.S. are investigating digital money extends that might be viewed as issuing unregistered securities through the token offering process.
Beforehand, the Securities Exchange Commission ended a token offering from Munchee, after which the task gave discounts to speculators.
Moreover, the discharge from TSSB went ahead to express that BitConnect has not shared any data about its money related status, how it will procure a benefit or even its correct area.
Be that as it may, this has not prevented the organization from guaranteeing to be a sheltered venture, as indicated by the discharge.
BitConnect's current token, named BCC, presently is exchanging simply finished $400 with a market top of $2.5 billion as of Friday, information from CoinMarketCap appear. The coin has been declining in an incentive over the previous week from a high of $460 on Dec. 30, 2017.
The Texas discharge likewise incorporated a notice against cryptographic forms of money by and large:
"Putting resources into digital forms of money ... conveys noteworthy hazard due to administrative and lawful activities, rivalry from different cryptographic forms of money, and the extraordinary unpredictability in the cost of numerous digital currencies."