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ND issues cease and desist orders against three companies promoting coin offerings

BISMARCK — North Dakota Securities Commissioner Karen Tyler has issued cease and desist orders against three companies promoting unregistered and potentially fraudulent securities in North Dakota in the form of Initial Coin Offerings (ICOs).

The orders are a result of investigations being conducted by the department's ICO Task Force, convened by the commissioner to identify ICOs and cryptocurrency related investments that pose a risk to North Dakota investors.

The effort is also part of Operation Cryptosweep, a coordinated multi-jurisdiction investigation and enforcement effort involving over 40 U.S. and Canadian securities regulators.

The companies that are subject of the orders are Crystal Token, Advertiza Holdings (Pty) Ltd. and Life Cross Coin, also known as LifecrosscoinGmbH.

An ICO is a financing method used by startup companies to raise capital. Companies create a new virtual coin or token, which is then sold online to investors in the ICO in exchange for cryptocurrency or fiat currency. Companies market their ICOs through their own websites, social media platforms and online marketplaces.

Crystal Token is represented to be an ERC 20 token on the Ethereum blockchain and is identified as CYL. According to Crystal Token's website it offers an "evolutionary multi-utility token" to trade in other cryptocurrency and earn daily interest up to 2 percent per day.

Advertiza Holdings is soliciting investors through their website which remains accessible to North Dakota residents. The site offers virtual currency called "Tizacoin" or "TIZA" which allows investment into the company focusing on digital advertising.

Life Cross Coin, aka Lifecrosscoin, operates a website from a Berlin IP address associated with ransomware, trojans, and identity fraud. The website purports its virtual currency, "Life Cross Coin" or "LICO" will be used for the donation and support of charitable organizations.

More information regarding ICOs can be found at the following links:

http://www.nd.gov/securities/sites/default/files/news/Cryptocurrency%20Investor%20Advisory%20NDSD.pdf

https://www.investor.gov/additional-resources/news-alerts/alerts-bulletins/investor-bulletin-initial-coin-offerings

" target="_blank">www.nd.gov/securities/sites/default/files/news/ICO%20Investor%20Advisory%20NDSD_0.pdf

www.nd.gov/securities/sites/default/files/news/Cryptocurrency%20Investor%20Advisory%20NDSD.pdf

https://www.investor.gov/additional-resources/news-alerts/alerts-bulletins/investor-bulletin-initial-coin-offerings

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