The US state of Alabama’s securities regulator has issued a cease-and-desist order against Acoin Trading and 96 other cryptocurrency websites. Cryptocurrency investment schemes promise “excess returns,” report “fake account values,” and charge “undisclosed fees.”
US state regulator orders closure of 97 cryptocurrency exchanges
The Alabama Securities and Exchange Commission announced Thursday that it has issued a cease-and-desist order against 97 crypto-trading sites. The advertisement states:
The Alabama Securities Commission (ASC) has issued a cease and desist order against Acoin Trading owner Philip Zucka and 96 other fraudulent cryptocurrency exchanges.
“It is caused by Zuka’s failure to register its investment products and the failure to register as an investment advisor,” the regulator explained, adding:
Zuka is violating Alabama securities laws by promising excessive returns, reporting fake account values and charging an undisclosed fee to an Alabama investor.
The regulator explained that an Alabama investor discovered Acoin Trading online and was fascinated by how the program could make investors eight times the original investment in just one week.
“Accordingly, the investor participated in a demo and invested approximately $10,000 of bitcoin, which was deposited into the wallet available on the Acoin Trading website,” the ASC noted.
However, when he wanted to withdraw his money, Zuka demanded that he pay an additional amount before withdrawing any money. The investor soon realized that the investment was a scam. He immediately lodged a complaint with the ASC and ceased all communications with Zuka and his trading platform.
However, the regulator said the Alabama resident lost out on the entire investment.
According to the order, the owner of Acoin Trading was a Namecheap Inc. user. named Sir Philip Zuka, or Sirzuka. Order details:
Sirzuka has created 281 sites through Namecheap Inc. Out of 281 sites, 127 operate and 96 operate in the same way as Acoin Trading. The IP addresses originated from Nigeria, Europe or the United States.
What do you think about the Alabama securities regulator shutting down 97 cryptocurrency trading sites? Let us know in the comments section below.
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