In California, the Department of Financial Protection and Innovation (DFPI) has intervened by targeting 11 crypto companies as they are referred to as Ponzi and Pyramid schemes.
California and crackdown on 11 scam crypto companies
The Department of Financial Protection and Innovation (DFPI) issued a press release announcing that it has issued orders against 11 different cryptocurrency-powered entities for violations of California securities laws.
We’ve issued orders against 11 companies for violations of CA securities laws.
“These actions protect consumers & ensure California remains the premier global location for responsible crypto asset companies to start & grow,” says Commissioner Hewlett. https://t.co/FVMSNilJXc pic.twitter.com/iEVy5CTxEh
— Ca Department of Financial Protection & Innovation (@CaliforniaDFPI) September 27, 2022
“We’ve issued orders against 11 companies for violations of CA securities laws.
“These actions protect consumers & ensure California remains the premier global location for responsible crypto asset companies to start & grow,” says Commissioner Hewlett.”
More specifically, nine of these companies allegedly solicited funds from investors to trade cryptocurrencies on behalf of investors, while one allegedly solicited crypto assets to develop metaverse software and another claimed to be a decentralized finance platform, or DeFi.
These are 11 businesses referred to by DFPI as Ponzi schemes, since funds raised from investors…
