Shipchain hit with cease and desist order


Shipchain, a token that runs on Ethereum blockchain has received cease and desist order. Shipchain’s token, SHIP providing an interesting study here for what happens if an ICO neglects what is generally ‘recommended’ nowadays for token sales which is no sales to US citizens, especially un-accredited, whether wrong or right. This has already led to 40 percent dump today.

Here is the notice sent to them. The main point is #12 which says “The tokens offered and sold by Respondent Shipchain constitute securities as defined by the Act.”

Looks like the tokens are not exempt, or no exemption has been claimed.

The real question should be, how do cryptocurrency laws get relaxed and you can literally throw your money away, however you must be an accredited investor to partake in the greatest tech revolution.

Here is what it says:

1. Respondent ShipChain offers investments related to cryptocurrency.
2. Specifically, Respondent ShipChain issues and offers units of its cryptocurrency, ShipCoin, as a means of accessing Respondent ShipChain’ s platform and as the only medium of exchange on the platform.
3. Respondent ShipChain, through its agents, offers investment opportunities in their tokens to South Carolina residents.
4. At all times relevant to this Order, Respondent ShipChain continuously offered investment opportunities in the ShipChain platform and the corresponding tokens to South Carolina residents through its website and in-person events held in South Carolina.
5. At no time relevant to the events stated herein was Respondent ShipChain registered with the Division as a broker-dealer, and no exemption from registration has been claimed by Respondent ShipChain.
6. At no time relevant to the events stated herein were the securities at issue registered with the Division or federal covered securities, and no exemption from registration has been claimed by the Respondent.