Today, the Securities Commission Malaysia (SC) directed CopyCash Foundation to immediately cease and desist all its proposed activities, including a purported plan to launch an ICO on January 10, 2018 in Malaysia. This directive covers all activities as described in or incidental to CopyCash Foundation’s white paper related to the ICO, including any roadshows, seminars or promotional events related to the scheme. The directive was issued because the SC “found that there is a reasonable likelihood that disclosures in CopyCash Foundation’s white paper and representations to potential investors will contravene relevant requirements under securities laws.” The SC also warned investors more generally “to be cautious of the risks of fraud and exercise due diligence before participating in ICO schemes.”
Last week we reported that Texas had entered a cease and desist order against BitConnect. Today, North Carolina did likewise, because it was offering investments but was not registered as a dealer or salesman of securities in North Carolina and because BitConnect had omitted to disclose material facts when offering the investments in North Carolina.