The securities regulator of the U.S. state of Alabama has issued a cease and desist order against Acoin Trading and 96 other cryptocurrency websites. Crypto-investment programs promise “excessive returns”, report “fictitious account values” and impose “undisclosed fees”.
US State Regulator Orders 97 Crypto Trading Websites to Shut Down
Alabama Securities Commission announced Thursday that it has issued a cease and desist order against 97 cryptocurrency trading websites. The announcement states:
The Alabama Securities Commission (ASC) has issued a cease and desist order against Sir Philip Zuka, owner of Acoin Trading and 96 other fraudulent crypto trading platforms.
“The order is a result of Zuka’s failure to register his investment products and failure to register as an investment adviser,” the regulator detailed, adding:
Zuka is breaking Alabama securities laws by promising excessive returns, declaring fictitious account values, and imposing undisclosed fees on an Alabama investor.
The regulator explained that an Alabama investor discovered Acoin Trading online and was intrigued how the program could make investors eight times the original investment in only a week.
“Therefore, the investor took part in a demonstration and invested around $ 10,000 worth of bitcoin, which was deposited into a wallet provided on the Acoin Trading website,” the ASC noted.
However, when he wanted to withdraw his money, Zuka demanded additional payment before any funds could be withdrawn. The investor soon realized the investment was a scam; he immediately filed a complaint with the ASC and stopped all communication with Zuka and his trading platform.
However, the regulator said the Alabama resident lost the entire investment.
According to the order, the owner of Acoin Trading was a Namecheap Inc. user named Sir Philip Zuka, or Sirzuka. The order details:
“Sirzuka” has created 281 websites through Namecheap Inc. Out of the 281 websites, 127 of them work and 96 of them work the same as Acoin Trading. The IP addresses were from Nigeria, Europe or the United States.
