Nui CEO Darren Olayan has taken to Facebook to claim the securities regulations behind a recently served cease and desist don’t exist.

Texas issued Olayan, Nui, Mintage Mining and Symatri with a securities fraud cease and desist on July 11th.

At a corporate level Nui has vowed to “vigorously defend” Texas’ alleged securities fraud violations, although what that specifically entails remains unclear.

Olayan’s bizarre regulation claim meanwhile was made in a Facebook video published a few hours ago.

Filming while walking down a suburban street, Olayan claims he’s “amped out of his mind” after “taking serious phone calls” all day.

Despite speaking in the video for six and a half minutes, Olayan (right) doesn’t directly mention or address securities fraud once.

[3:24] We have spent … we’re almost a year into this with our attorneys, on being prepared for tough situations – and being prepared to do things the right way.

Obviously it’s not black and white. There is no exact formula on how to do anything and be compliant or legal because there isn’t any.

There’s no regulation to this yet.

Securities law in the US is governed by the Securities Act, which was enacted all the way back in 1933.

Yes, eighty-five years ago – that’s not a typo.

As for there not being an “exact formula” to determine a securities offering, that’s also untrue.

With respect to MLM related securities fraud violations, typically US regulators rely on the Howey Test.

The “Howey Test” is a test created by the Supreme Court for determining whether certain transactions qualify as “investment contracts.”

If so, then under the Securities Act of 1933 and the Securities Exchange Act of 1934, those transactions are considered securities and therefore subject to certain disclosure and registration requirements.

Rather than acknowledge the simple issue of whether or not Nui offers securities through Mintage Mining and Symatri, Olayan attempts to reframe the cease and desist as a government conspiracy against “blockchain”.

[4:24] There’s states that are gonna battle over crypto and blockchain for the next five, ten, twenty years.

They’re going to… just like cannabis because no one knows what to do.

Now it’s being accepted, but it’s been years – where these states fight, y’know, over what their rights are and what federal rights are.

These are things that happen when you’re walking into new territories.

Again, let me point out that current securities law in the US was enacted eighty-five years ago.

Just because you come up with a new vehicle to offer unregistered securities through doesn’t mean you’re “unregulated”.

[0:49] The only reason why I feel assurance, safety, excitement (and) anticipation for the future is because of what we’ve been working on for so long.

We’ve been working behind the scenes developing a lot of technologies. Blockchain, you guys know that.

We’ve been working with a lot of these different things and the foundation, the future and where we’re taking this thing is not just a flash in the pan. It’s not a fly by night type of deal. It’s not.

When I say I’m staking my reputation and my career and everything I know that blockchain is going to change the world over the next ten, twenty, thirty years, it’s because I know what we’re working on behind the scenes.

It’s exciting. It’s super exciting.

We just got validation today… I don’t have the right or permission to say or explain any of it… but we have got the validation that I have been waiting for since we started the project.

[2:24] We got the validation that we needed to prove a concept and a blockchain that will change the world. Guaranteed.

If most of the above went over your head on a technical level, don’t worry.

Through my reporting here on BehindMLM I’ve developed a basic understanding of cryptocurrency and the underlying technology.

Even then though and bearing in mind this is supposed to be within the context of securities regulation, Olayan’s blockchain rant makes no sense.

If you’ll indulge me with permission to create an analogy; Imagine Nui were offering the eventual acquisition of a Lamborghini in exchange for a fixed-sum investment.

Commissions are paid out on those investments, the whole MLM comp plan nine yards.

With Nui not being registered to offer securities, eventually a regulator steps in and files a securities fraud cease and desist.

Darren Olayan responds not by addressing the alleged securities fraud, but by telling investors Nui has been working on this new sweet blockchain engine.

Olayan claims the engine requires no fuel and will revolutionize the auto-industry.

That’s pretty much what’s happening here. And with respect to the alleged securities fraud, the merits of Nui’s new lambo engine are neither here nor there.

The same is true for Nui’s blockchain, the details of which mind you have not been disclosed to investors – a securities violation in and of itself.

Across a series of Facebook videos published over the last few days, Olayan has trotted out “haterz”, conspiracy theories and the usual MLM clichés people drag out in place of dealing with the reality they’re facing.

Unfortunately, either willingly or through sheer ignorance, Nui affiliates have taken it upon themselves to run around the internet parroting Olayan’s sentiment.

Here’s one recent example from Nui affiliate Jeremy Jenkins;

We are undaunted moving forward with Nui!

Only scared competitors attack on Friday afternoons.

You know what they say… If you’re ticking people off then you know you’re doing something right.

Don’t let a few bad apples spoil the whole bunch. We know the truth about Nui, and the real opportunity here.

You know what claiming 4,000% returns really gets you in 11 days? Terminated.

Of all the cease and desist orders given by Texas in the crypto space, over 90% haven’t responded because they have nothing to defend.

Nui had a formal response released within hours of receiving their notice, and it’s obvious they’re making their case.

Check out their official stance released earlier this week on the Nui Blog.

Nui has arrived as a top crypto player! With uncharted waters still ahead, it’s clear that Nui is winning in the game of cryptocurrency.

This is only the beginning. Can’t wait for the world to see what Nui is really all about.

There’s no such thing as bad publicity. Now more than ever Nui has the chance to show the world what they truly have to offer. This is only the beginning.

Texas is ready to end the game in cryptocurrency but Nui is one of the only players ready to make the next move.

Amidst the desperate optimism, did you spot how Nui plan to convince the Texas Securities Board that unregistered securities are legal in the US?

Me neither.

Olayan’s closing comments are of particular interest, as they suggest he believes decentralizing securities fraud might somehow legitimize it.

[4:50] So when I was asked hey how do you feel? I’m even more motivated and excited then I’ve ever been, because of the validation we received today, July 13th, on one of our major projects that we’ve been working on for over a year.

Of course it’s going to run on our infrastructure, on our decentralized network.

It is going to run through you, us, everyone. We are the decentralized network. We are what blockchain was meant to be: spread out across the world, decentralized.

[5:43] We have a very deep and long-range game-plan for our company, our technology and where we’re gonna go – and how we’re gonna play in this world of blockchain.

It’s fun and it’s exciting.

This echoes an earlier claim by Olayan related to possible regulation of Nui back in March.

We’ve set up the structure properly so that if anything were to go sideways, anything, money’s received for contracts through crypto. Money’s paid out through crypto.

That means if everything that we did to prevent and be compliant when compliance comes, if that all went sideways, we still have the ability to pay them (investors) on their contracts (laughter).

Simply put: Should regulators come knocking, Olayan plans to continue operating Nui illegally through cryptocurrency.

Sounds like a bullet-proof strategy to me.

Laughter aside though, the Texas Securities Board are interested in one thing and one thing only: allegations of securities fraud.

Until Nui and Olayan actually address the unregistered securities issue – either publicly or by way of filing a response with the Securities Board, the company and its affiliates just blowing hot air around.

Whether that hot air is distributed through a decentralized blockchain or not is ultimately neither here nor there.