Genesis mining cease and desist order

cloudmining
genesis-mining

#1


via CD

Cloud mining service Genesis Mining has been told to stop operating in the state of South Carolina, according to a cease-and-desist order released on March 9.

Genesis and a second firm, Swiss Gold Global Inc., were named in the order, which says that mining contracts sold to state residents are considered securities.

The Securities Commission of South Carolina alleged that Swiss Gold Global acted as a broker-dealer for Genesis, but that it hadn’t registered in the state to offer securities.

“At all times relevant to this order, Respondent Genesis Mining continuously offered investment opportunities in Mining Contracts to South Carolina residents through its website. At no time relevant to the events stated herein was Respondent Swiss Gold Global registered with the Division as a broker-dealer, and no exemption from registration has been claimed by Respondent Swiss Gold Global.”

Through the contracts, buyers essentially purchase an amount of computing power over a period of time that is hosted elsewhere, as opposed to owning mining hardware themselves. In the Commission’s view, they “constitute investment contracts and are thus securities” under South Carolina law.

Both firms were ordered to stop doing business in South Carolina, according to the document. Additionally, both Genesis and Swiss Gold Global were permanently barred from offering any securities in the state in the future. That said, the companies have the opportunity to a request a hearing with state officials to present their side.

The move represents the latest cryptocurrency investment-related cease-and-desist order to come out of a U.S. state regulator in recent weeks.

To date, state officials have sent orders to a number of firms, most recently the one behind a cryptocurrency endorsed by film actor Steven Seagal.

The full cease-and-desist order can be found below:


#2

I’m a bit mixed about this.

On the one hand it’s ridiculous to have the SEC charging around killing things like this.

But on the other hand - ‘most’ cloud mining contracts are a gamble at best thinly disguised as an opportunity and some people do end up with less money back than they put in. But I do think people should have the freedom to gamble.

So - I can understand why some of this stuff needs shaking out, I would just like a little more confidence that these are done from an educated standpoint and not just heavy-handedness.


#3

there’s no value in any of them in 2018. there was a time in 2017 when you could get more back than you paid for the contract but those times are gone.

so from that view, at current prices they are offering contracts that lose money so a cease and desist will protect south Carolina users. a good thing.


#4

Maybe what the mined coins are worth now, it might be a loss, but if people are willing to take the gamble that they could well be worth more at a future time, shouldn’t that be their choice? Or do we need some Govt Entity to tell us what our choices are now?

Stay Fishy


#5

i do hear you on that, though some people need protecting ( bitconeeeeeeeeeeeeeeeeeeeeeeect )

potentially the BTC contracts could work out long term ( very long term ). the two year contracts they put up though are straight forward BS when compared to just buying the coins. only think that could save those contracts is a dramatic drop in network hashpower without the price falling through the floor ( so basically impossible )


#6

Mining market itself is a gamble, you never know how much will you earn from day to day. I think when you start mining you kind of agree on that, but you just hope for the best outcom. I am mining with Genesis MIning and despite market changes I haven’t had any major problems with my paymants or contract. Yes, I have upgraded my contract and it seems to be a good move.