Shipchain (SHIP) has become one of the recent targets of “CryptoSweep”, the operation by the North American Securities Administrators Association (NASAA) to combat ICO’s that are operating illegally.
Shipchain is a blockchain logistics and transport company that recently launched their initial coin offering (ICO). However, according to the NASAA, the ICO is not legal under US legislation.
The order was made by Attorney General Alan Wilson and outlines infringements made the company, including that the company did not contact any kind of broker or ask for registration with the Securities Division of the Office of the Attorney General.
With offices in Delaware, the company have been offering investment opportunities through token sales to residents of South Carolina and have now been permanently banned from participating in the securities industry.
Shipchain intends to provide tracking and freight services via tokens on the Ethereum network. In response to the order they posted a notice on twitter assuring their lawyers are working on the case:
We are aware of the letter that was sent to us by the Attorney General of South Carolina. Rest assured that our lawyers are working on responding as fast as they can. We will keep you updated as soon as we have more information.
— ShipChain (@ShipChain) May 22, 2018
The order is not entirely finalized yet and Shipchain has 30 days to request a hearing on the matter, after which they will get sanctioned and not be able to continue any business related to securities matters within the U.S.
Image From Shutterstock