Swiss Gold Global initially launched in mid 2016 as a $50 a month “premium education program“.

When that flopped, the company rebooted itself as a bitcoin mining ROI opportunity a few months later.

That business model has now caught the attention of US regulators, promoting South Carolina to issue a cease and desist against Swiss Gold Global on March 9th.

On their website, Swiss Gold Global claim their bitcoin mining is provided by Genesis Mining, a third-party non-MLM company.

As per an investigation by the South Carolina Securities Division, neither Swiss Gold Global or Genesis Mining are not registered to offer securities in the state.

Genesis Mining’s partnership with Swiss Gold Global to illegally offer unregistered securities in South Carolina has seen them as a named respondent in the cease and desist.

The Securities Division found that

Swiss Gold GLobal offers cryptocurrency mining contracts, which are fulfilled by its partner, Genesis Mining.

Genesis Mining offers mining contracts for six (6) cryptocurrencies: Bitcoin, Dash, Ethereum, Litecoin, Monero, and Zcash, each of which entitles an investor to the same services.

In exchange for investing in a (Swiss Gold Global) Mining Contract, Genesis Mining engages in a certain amount of computational effort on behalf of the investors.

The computational effort is solely put forth by Genesis Mining.

The profit ostensibly generated through investing in a Mining Contract is primarily dependent on the efforts of Genesis Mining.

Swiss Gold Global, through its agents, offers investment opportunities in Mining Contracts to South Carolina residents.

At all times relevant to this Order, Genesis Mining continuously offered investment opportunities in Mining Contracts to South Carolina residents through its website.

As per the above findings, South Carolina has demanded both Swiss Gold Global and Genesis Mining

cease and desist from transacting business in South Carolina in violation of the Securities Act.

Both companies have also been permanently ‘barred from participating in any aspect of the securities industry in or from the State of South Carolina‘.

This appears to apply to Genesis Mining as a whole, not just their Mining Contract partnership with Swiss Gold Global.

Swiss Gold Global and Genesis Mining have thirty days to respond to the cease and desist and request a hearing to defend themselves.

If no response is forthcoming, the cease and desist will be made permanent.

 

Update 27th July 2018 – Based on information submitted to the South Carolina Securities Division, Genesis Mining’s cease and desist was dismissed on July 26th.

The cease and desist issued to Swiss Gold Global remains in place.