Blockchain Startup ShipChain Hit With Cease And Desist Order In South Carolina

ICO News, News, Regulation | May 23, 2018 By:

The South Carolina Attorney General’s Office has issued a cease and desist order against blockchain startup ShipChain for allegedly violating the state’s securities statutes.

ShipChain is a blockchain solution provider for the transport and logistics industry. According to its website, the platform allows users to pay either directly in tokens they hold, or purchase tokens from ShipChain for booking freight. Freight shipments can be paid using the company’s ERC-20 SHIP Token, and settled in tokens on their platform.

In an order issued Monday, South Carolina Securities Commissioner said ShipChain offered investment opportunities in their tokens to South Carolina residents through its website and in-person events held in the state. The order added that the company was not registered with the Securities Division as a broker-dealer.

“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,” the order stated. “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.”

The Securities Commissioner ordered ShipChain to cease and desist from transacting business in the state. The company is also permanently barred from participating in any aspect of the securities industry in or from the state of South Carolina. The order has given the company 30 days to respond, comply or to ask for a hearing.

In a Twitter post, ShipChain acknowledged the order and said that it was working on a formal response.

“We are aware of the letter that was sent to us by the Attorney General of South Carolina. Rest assured that our lawyers are working on responding as fast as they can,” the company said. “We will keep you updated as soon as we have more information.”

Back in March, the South Carolina Attorney General’s Office Securities Division issued a cease and desist order against crypto cloud mining platform Genesis Mining for offering unregistered mining contracts.

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ShipChain
SymbolSHIP
Start DateDec 31, 2017
End Date2018-01-05 19:00:00
Offering TypeN/A
PlatformN/A
WebsiteWebsite
WhitepaperWhitepaper