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New Jersey’s Attorney General says the online bitcoin investment platform has been fraudulently selling unregistered securities in the state. The New Jersey Bureau of Securities, a division of AG Gurbir S. Grewal’s office, has sent a cease-and-desist letter to Bitstrade, effective immediately, alleging that the company is in violation of the State’s Uniform Securities Law for pooling investments and promising returns of 10%, accruing daily. Bitstrade takes payments in bitcoin.
The Bureau’s response comes in the wake of a meeting among federal lawmakers to discuss the crafting of a regulatory framework for cryptocurrencies. Meanwhile, AG Grewal said the Bureau is looking to “protect investors as they navigate the uncharted and largely unregulated domain of cryptocurrency-related investments.”
“Bitstrade is a prime example of a company seeking to capitalize on the cryptocurrency…