Published: 30.03.2022
Article reading time:
2 minutes.
The New Jersey Securities Bureau has banned cryptocurrency broker Voyager Digital from offering “unregistered securities in the form of interest-bearing investment accounts” in the state.
According to the regulator, the placement of unregistered securities involves significant risk for investors because issuers do not disclose all relevant information, including, for example, the provision of detailed financial statements that usually accompany registered offers.
“The decision makes it clear that the cryptocurrency securities market is not the Wild West and investor protection laws apply to it. Through these efforts, we continue to hold accountable those who threaten the integrity of our financial industry and put investors at risk,” said Acting Attorney General Matthew J. Platkin.
As of March 1, 2022, Voyager Digital has opened approximately 1,530,000 Voyager Earn cryptocurrency accounts, holding approximately $5 billion. Approximately 52,800 accounts were registered for New Jersey investors, accounting for approximately $197 million.
The Voyager lawsuit is the third time the Bureau has banned crypto firms from offering and selling unregistered securities in the form of interest-bearing investment accounts in New Jersey.
Last July, the Bureau issued an order to terminate BlockFi Lending, and in September last year, in conjunction with the Kentucky regulator, the regulator issued an order to terminate the Celsius Network.
Source: Bits
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