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New Jersey demands suspension of Seagal-backed ICO

In a surprise move, New Jersey regulators have issued a cease and desist order to the Steven Seagal-backed Bitcoiin2Gen ICO.

While Steven Seagal’s decision to back the Initial Coin Offering  (ICO) powering Bitcoiin2Gen might stand as one of the stranger stories in the cryptocurrency sphere, the matter looks to become more complicated thanks to the fact that New Jersey regulators have now issued a cease and desist order to the burgeoning project.

Filed by the State of New Jersey Bureau of Securities, the order accuses the leads behind Bitcoiin2Gen as “fraudulently offering unregistered securities in violation of the Securities Law.”

The interim order comes amidst a wider move, as the US Security and Exchange Commission has warned that ICOs that were endorsed by celebrities could be illegal.

The order elaborates that “The Bitcoiin Websites do not disclose what expertise, if any, Steven Seagal has to ensure that the Bitcoiin investments are appropriate and in compliance with federal and state securities laws”, and further takes aim by quipping that “there are no disclosures as to the nature, scope, and amount of compensation paid by Bitcoiin in exchange for Steven Seagal’s promotion of the Bitcoiin investments.”

Seagal has, up until the order, continued to promote Bitcoiin2Gen – ambiguously tweeting on March 6th that the new cryptocurrency would soon be listed “on the biggest exchange globally”.

Regulators in the United States – specifically the Securities and Exchange Commission – have taken a harder stance against the activities of ICOs, and have proceeded to launch a probe to explore the market activities and participants leading certain projects.

It remains to be seen if the team behind Bitcoiin2Gen will proceed to appeal the ruling, or if Seagal will continue his involvement.

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