The crackdown continues across the United States against cryptocurrency companies selling unregistered securities. Yet another of these entities have been shut down by the North Carolina Secretary of State Securities Division, this time in the form European project PowerMining Pool (PMP).
The North Carolina government issued a temporary cease-and desist on the said company, just a mere couple of months after they also went after the now-defunct BitConnect. Among the grounds for the cease-and desist include the allegation that the local PMP campaign were using sales tactics that were in violation of the state’s Securities Act, and “threaten immediate and irreparable public harm.”
According to their investigation, PMP would sell “shares” for bitcoin, while also claiming that their shareholders enjoy “totally passive” profits mere hours after opening and starting their own bitcoin accounts. These tactics would be employed through various social media outlets like Facebook, Instagram, YouTube, and sometimes even local classified ads. The sweet success story should then entice unknowing individuals looking to get on board the bitcoin bandwagon, pushing them to make ill-advised investment decisions. Taking it a step further, PMP also claims that if the individual gets other people to sign up to the program, then they are more likely to enjoy bigger benefits.
However, despite this type of activity, it still is uncertain whether the names attached to the project are even actually real. “The Securities Division has been unable to confirm whether Andrew Conti and Mike Conti of central Europe are real people,” said the order.