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The Bureau of Securities in New Jersey has issued two emergency orders to the companies Zoptax and Unocall to end their initial coin offerings (ICOs). The Bureau alleges that the token offerings qualify as fraudulent unregistered securities offerings.
The Office of the Attorney General in New Jersey announced the Bureau’s orders in a news release on Aug. 7. In the case of Zoptax, the report states that the company is offering the cryptocurrency Zoptax Coins through a website-conducted ICO. The website apparently states that the ICO has a soft cap of $500,000, as well as a hard cap goal of $3.4 million.
In addition to being unlawfully unregistered as a security, the Bureau claims that Zoptax made “materially false and misleading statements and/or omitting to state material facts in connection with the offer and sale of its securities.” These reportedly include the allocation of ICO funds, pertinent information on the entities behind Zoptax, as well as pertinent location details such as the company’s physical address and principal place of business.
Likewise, the Bureau judged that the company Unocall had misled its prospective investors in the same manner. Unocall is also offering a website-conducted ICO, as well as opportunities in its ‘Staking Program’ which purportedly provides guaranteed interest of 0.18% to 0.88% per day.
The firm is reportedly conducting its ICO in order to raise funds for developing its ecosystem that would allow for trading its native tokens, altcoins and fiat money through the company’s UNOpay Mobile Wallet.