Nui and Mintage Mining to “vigorously defend” securities cease & desist
Although we’d caught wind of it a day before, yesterday Nui published it’s official response to the Texas cease and desist.
Following months of assurances that Nui, Mintage Mining, Symatri and the Kala altcoin had been signed off on by “top law firms in the US”, Texas issued the company with a securities fraud cease earlier this week on Wednesday.
In light of the notice, Nui has advised affiliates it has “cease(d) offering” its products ‘in the state of Texas for the time being‘.
Despite Texas securities law being materially indifferent from federal securities law, Nui and owner Darren Olayan are continuing to offer unregistered securities throughout the rest of the US.
We are working with our legal counsel to evaluate the allegations made in the order and intend to vigorously defend ourselves against the charges.
As late as May 2018 Nui and its affiliates were claiming the company was represented in the US by Jones Day.
How exactly Jones Day intent to “vigorously defend” Nui and convince the Texas Securities Board that unregistered securities are legal remains to be seen.
The company has until Saturday, August 11th to officially respond to the cease and desist notice. Stay tuned…
Update 1st September 2018 – As of September 1st, Nui has deleted its “official response” blog post referenced in this article.
August 11th has obviously come and gone. So far we haven’t seen an official update from either Nui or the Texas Securities Board.
Update 22nd February 2019 – As per a February 21st order, the TSSB has fined Nui $25,000 for violations of the Texas Securities Act.
Some crosstalk from a few Nui facebook groups:
Nui is said to have responded to the Texas State C&D. No details provided but Nui is confident.
No other state has issued a C&D but out of an abundance of caution Nui has shut down four additional states (Washington state, Maryland, Massachusetts and New York state). Nui is confident that this will only be temporary.
You can no longer make purchases from Nui using credit cards. They are soon to switch to ACH. I might sound a bit churlish if I suggested this was to eliminate charge backs.
The first month of electric bills from Kala mining rig owners are rolling in. Many people are reporting up to and over 300% increases in electric consumption.
These affiliates are comforting each other with vision of Kala token price increases, you know, just as soon as the C&D issue is settled in their favor.
There’s no reason to suspend business operations in any other state, unless Nui corporate are aware of investigations into their company in those states.
I’m hesitant to believe any response has been filed unless Nui corporate confirm it. USI-Tech affiliates were insisting a response had been filed, right up until the Texas Securities Board issued a press-release confirming they’d received nothing.
If Nui has filed a response, hopefully they go all the way and the MLM industry can put this “hur hur cryptocurrency = exemption from securities law” nonsense behind it for good.
Article updated to acknowledge Nui has removed its blog post stating it would defend the Texas cease and desist.