Skip to content
Misrepresentations — Ncc — technology — 2019 — News — Securities — Video — Approximately — Markets

Cryptocurrency firm based in Vancouver acknowledges misleading investors, pledges to reimburse $3.3 million.

A British Columbia-based cryptocurrency platform has reached an agreement to settle with their local securities commission, requiring them to return $3.3 million obtained from investors in a digital asset they produced and marketed.

,   and  Administrator
2 min read

Cryptocurrency firm based in Vancouver acknowledges misleading investors, pledges to reimburse $3.3 million.

Hey there! Check out this juicy scoop regarding a certain Vancouver-based cryptocurrency exchange. It turns out they've had quite a run-in with the local financial markets regulator.

Known as NetCents Technology Inc., this company swung into the spotlight for all the wrong reasons. Here's the lowdown:

  1. Illegal Coin Launch: From September to December 2017, NetCents floated its very own cryptocurrency, the NetCents Coin, to some 500 investors in British Columbia and beyond. Unfortunately for them, they did it without obtaining the necessary registration or exemptions, making it a security under Canadian law.
  2. Deceitful Marketing Tactics: To lure unsuspecting investors, NetCents peddled a heap of false information. They made numerous misleading statements about their corporate structure, the number of coins sold, and their monthly revenue[4][5].
  3. Unauthorized Exchange Operation: On top of that, the cryptocurrency exchange didn't play by the rules, operating an unauthorized exchange to boot.
  4. Settlement and Compensation: As a result of the debacle, NetCents agreed to fork over the $3.3 million they raised from investors during the coin flogging. Funnily enough, these funds had been frozen since way back in 2018 thanks to a regulatory order. Now, it'll be returned to investors who took a hit due to NetCents' shady practices[1][2].
  5. Permanent Ban: Take a guess what was waiting for NetCents at the end of the tunnel. Yep, you're right—a permanent ban from trading and registration in British Columbia[2]. It seems their previous management, including the late Clayton Leigh Moore, signed their tickets out of the crypto game.
  6. Number of Investors Affected: You'd better believe it was a big group that got hoodwinked—around 500 investors in total were left holding the bag during the coin sale[3][5].

There you have it, folks! Just goes to show that not all cryptocurrency companies are above board. Keep your eyes open and your wallets secure!

  1. In a surprising turn of events, video footage from 2019 reveals that NetCents Technology Inc., the Vancouver-based cryptocurrency exchange, was under investigation by the local financial markets regulator (NCC) for operating an unauthorized exchange and misrepresentations in securities like the NetCents Coin.
  2. Approximately $3.3 million raised by NetCents during the 2017 initial coin offering (ICO) was found to be from misrepresentations, including false claims about their corporate structure, the number of coins sold, and monthly revenue.
  3. As a consequence of these illegal activities and deceitful marketing tactics, NetCents was banned permanently from trading and registration in British Columbia in 2019.
  4. In a recent development, it has been reported that the funds frozen since 2018 due to a regulatory order will now be compensated to around 500 affected investors.
A local virtual currency trading platform based in Vancouver agrees to compensate $3.3 million to the provincial financial market authority, following the funds it raised from investors through the offering of a cryptocurrency asset it produced and distributed.

Read also:

    Latest