Genesis Mining Ordered to Cease & Desist in South Carolina
March 16, 2018
Cryptocurrency cloud mining platform Genesis Mining has been ordered to cease and desist by South Carolina Attorney General's Office Securities Division. The lawmakers claim that the company has been offering and selling unregistered mining contracts to the state's residents. These contracts are considered as unregistered securities.
The order claims that the company was not registered as a broker-dealer and did not claim for exemptions from the registration. South Carolina Attorney General's Office Securities Division determined that offered by the company mining contracts are in fact unregistered investment opportunities. The company has been permanently barred from participating in any security-related activity in the state of South Carolina.
Genesis Mining is a mining platform, that offers customers large-scale cloud mining service. It also coordinates all the miners and regulates related questions. Investment in the company are rather risky, since the complexity of mining is growing, therefore the equipment becomes less profitable and competitive.