Three Fraudulent Crypto Companies Sanctioned by North Dakota Government

On Sept. 26th, North Dakota Securities Commissioner Karen Tyler issued cease and desist orders for three companies in her state that may have been offering fraudulent ICOs.The North Dakota Securities Department's official release states.

"The expanding exploitation of the cryptocurrency ecosystem by financial criminals is a significant threat to Main Street investors. Financial criminals are cashing in on the hype and excitement around blockchain, crypto assets, and ICOs - investors should be exceedingly cautious when considering a related investment."

The three companies listed in the release and issued cease and desist orders were BitConnect and related companies BitConnect LTD and BitConnect International PLC, Magma Foundation and related companies Magma Coin and Magma, and Pension Rewards Platform, aka Pension Rewards.

BitConnect has been in the news for defrauding its investors before, in other states like Colorado and Texas.

Tyler cautions that for now, the BitConnect site remains accessible in her state and that you should not invest in their company.

Tyler points to the fact that they offer a 120 percent rate of return on an investment in their tokens as an example of their bad behavior, stating that the company is not licensed to offer securities in ND and that their claim is "Unsubstantiated and misleading."

In short, the company has become synonymous with cryptocurrency investment fraud.

The company shut down in January 2018, and the alleged founder was arrested in August.

Magma is also still currently active and available to the residents of ND, though Tyler states in her release that images used to depict the company heads are fraudulent and that those employees are also assigned fake names.

It echoes the other two companies in its claims that investors will see incredible return in very little time, providing no proof of these claims.