ICO hit with Cease-and-Desist Order from Vermont Regulators

Vermont State ICO

The state of Vermont has issued a cease-and-desist notice against a company holding an ongoing initial coin offering (ICO).

LevelNet, which according to its website information is based in Irving, California, was ordered by Vermont Department of Financial Regulation on Monday to cease operations. Officials from Vermont accused the firm of “violations related to the Vermont Uniform Securities Act” and also ordered the company to stop the sale of tokens tied to its platform.

Per their website, LevelNet has raised about $ 752000 during the sale. The company has yet to release a statement about the order.

The order comes as part of a broad crackdown dubbed Operation Cryptosweep. Several regulators in both the US and Canada have started coordinating efforts in a bid to stop token sales and cryptocurrency scams.

According to the North American Securities Administrators Association (NASAA), almost 70 inquiries have been started in recent months.

“The rapid rise of Bitcoin has made Main Street investors aware and interested in cryptocurrencies and ICOs,” said Michael Pieciak, a commissioner for the Vermont Department of Financial Regulation.

He added in a statement that:

“Although many are legitimate offerings that are fully compliant with law – many are not – and this order serves as a good reminder to exercise caution when considering investing in these products.”

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