US State Shuts Down Cryptocurrency Mining CompanyMay 2, 2018
Media reports have revealed that one company purportedly involved in cryptocurrency mining in North Carolina has received a Cease and Desist order from the U.S state’s authorities. This comes after the company, known as PMP (Power Mining Pool), also received a similar Cease and Desist order a few weeks ago, but it didn’t respond as required.
North Carolina’s Securities Division issued the order to the mining firm last week. In a statement, the authority declared that they found out that “Power Mining Pool is violating the state’s Securities Act by: a). Offering unregistered securities as “mining pool shares”. Offering securities while it’s not registered for that activity, and c). Making material misstatements as it offers securities.”
The order mandates PMP and any individual, employee, entity, independent contractor, officer, or director under its control or direction to permanently stop and desist from selling any securities in North Carolina until the security has been registered or exempt.
They also should not operate as a securities salesman, agent, or dealer unless they have been registered by the state. Again, they should not engage in any fraudulent activities in connection with offering or selling any securities or violate any other rules and provisions of the state.
On March 2nd the same authority issued a similar, but temporary Cease and Desist order to the firm. However, Power Mining Pool is yet to respond to this development or request a hearing. The company’s website, which is its main business platform, went off on 6th March, the order reveals.
The U.S state described the company as being an online business which is unregistered in its and any jurisdiction, without any physical place of conducting business and that “the persons who managed Power Mining Pool are not identified.”
The company claims that it operates and owns various mining rigs that can mine seven different cryptos in 24 hours each day, every day of the week. It also says that through its mining rigs, it tracks the profitability of all seven cryptocurrencies and automatically “switches resources away from the less profitable coins.”
The company also offers its investors its mining pool shares to mine on its behalf. “Our investors who buy mining pool shares should first purchase BTC using their fiat currency like the Euro or the U.S dollar,” the order conveyed. “Next, the firm directs that in order to open an account on its website, the investors have to deposit their BTC into its bitcoin wallet.” PMP then claims that it mines cryptos on behalf of the investors and purports to pay them the coins mined in fiat.
The company also claims that investors may also “trade their mined coins for BTC.” It says that it “pays its investors on any profit it makes in its trading pool” every 3 hours. North Carolina’s Secretary of State wrote that “Those mining pool shares the company purports to offer are securities and they’re not registered with the state’s Administrator. Power Mining Pool willfully fails to reveal material facts when it’s offering the said mining pool shares.”