It’s pretty established now that MLM cryptocurrency cloud mining opportunities are a security.

Which makes Nui’s new kala mining offering all the more unbelievable.

Nui announced their new kala mining opportunity in a November 29th blog post;

If you missed the pre-sale of Kala last winter, your only chance to mine has been through the purchase of a Kala Mining Rig.

Starting today, that’s about to change, with the introduction of the Kala Mining Product Line!

Nui are offering two ways for affiliates to acquire kala; cloud mining and/or the purchase of mining hardware.

The cloud mining sees Nui affiliates invest in either “Gigahash” or “Terahash” contracts.

All you’ll have to do is pay a monthly service fee, and watch your Kala coins build up.

Gigahash contracts start at $50 with an additional $15 a month fee. There’s also a $100 contract ($30 monthly fee), $500 contract ($42 monthly fee) and $1000 contract ($57 monthly fee).

Terahash contracts cost $4000 plus a $115 monthly fee.

On the MLM side of things the Gigahash contracts pay a direct referral commissions and unilevel team commissions (10 levels).

Note that both the initial investment and ongoing monthly fee are commissionable.

For the Terahash contract, only the initial investment is commissionable (direct commission plus ten level unilevel).

Kala mining rigs are being flogged for $4000 and also pay direct and residual commissions.

As it stands kala is not publicly tradeable. It has no value outside of Nui and is only exchangeable for actual money via Nui’s internal exchange.

What makes Nui’s kala mining offering remarkable, and not in a good way, is the fact the company is already under investigation for securities fraud.

Back in July Nui was served a securities fraud cease and desist by the state of Texas.

In additional to CEO Darren Olayan claiming securities regulation didn’t exist, Nui vowed to “vigorously defend” allegations in the cease and desist notice.

Periodic updates from Olayan on social media suggest there is an ongoing dialogue between Nui and the Securities Board. We haven’t had any official updates however since the initial notice was issued four months ago.

Here’s the thing though, to the best of my knowledge Nui still isn’t registered to offer securities in Texas.

In fact the company isn’t registered to offer securities anywhere in the US. Neither Nui or Darren Olayan appear on the SEC’s Edgar database.

Meaning from the outset, Nui’s passive kala mining opportunity is an illegal unregistered securities offering.

Pending a response from the Texas Securities Board (or SEC), stay tuned…