Genesis Mining dismissed from South Carolina cease and desist
Cloud mining company Genesis Mining found itself the recipient of a securities fraud cease and desist, as part of South Carolina’s crackdown on Swiss Gold Global.
Despite indicating they wouldn’t be challenging the notice, information was nonetheless submitted to the South Carolina Securities Division.
Based on this information, Genesis Mining’s cease and desist has been dismissed.
The Securities Division’s July 26th order doesn’t go into what information they received, other than stating it’s related to “matters detailed” in the original notice.
Upon due consideration of such information, (the Securities Division) finds good cause has been shown to dismiss Respondent Genesis Mining, Ltd. from the Administrative Order to Cease and Desist.
The notice against Swiss Gold Global remains in place.
Reading between the lines, it appears the Securities Division has drawn a distinction between a third-party service provider and a company using that service provider to offer unregistered securities through.
Without knowing what was covered in the information submitted to the Securities Division though, it’s hard to say for sure.
With respect to the MLM cryptocurrency niche, the take-away is that service providers might have a shot at beating a state-issued cease and desist.
The MLM company offering the security however still needs to register its securities offering with the SEC (or at a state-level if they only wish to operate in certain states).
To date no MLM company has challenged a state-issued cease and desist.
Nui is the latest company to receive a securities fraud cease and desist, issued by Texas earlier this month.
The company has told affiliates it intends to challenge the notice, but as of yet there’s been no confirmation a hearing has been sought.