Genesis Mining, a cloud based cryptocurrency mining service has been ordered to stop operating in the state of South Carolina after they recieved a cease-and-desist order on March 9.
Genesis along with Swiss Gold Global Inc., another crypto mining firm, were named in the order. The cease and desist enforces that mining contracts sold to state residents “constitute investment contracts and are thus securities” under South Carolina law.
The Securities Commission of South Carolina went on the claim that Swiss Gold Global acted as a broker-dealer for Genesis, but had never registered in the state to offer securities, which they must do to retain legal status.
“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.”
Both companies were ordered to stop doing buisiness in the State immediately.