The California Finance Authority is investigating 11 crypto-platforms that are considered synonymous with the California Securities Act.
The California Finance Authority has revealed that doing business with these crypto platforms is similar to doing a chain-sharing business. According to the Department of Financial Protection and Innovation (DFPI) announceThere are a number of crypto companies that offer unregistered securities to investors and claim to solicit investments for crypto trading.
There are platforms that claim to be in the business of creating Metaverse software, and DFPI has ordered those crypto companies to ban it.
“All companies are accused of using investor funds to pay profits to other investors. Each company has a referral program and a commission is paid to investors if they are able to invite new investors. And there will be an additional commission if new investors are able to invite more investors.”
Some of the companies that might do the chain-sharing business include Pegasus, Elevate Pass, Remabit, and World Over the Counter Limited. There’s also a well-known lending platform, Nexo, which DFPI says Nexo offers its users a profit. Jobs in California without product registration are securities.
Source: LINK
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