Project backed by Steven Seagal warned by regulators
Tennessee residents have been warned about the Steven Seagal-backed ‘Bitcoiin’ project by the Securities Division of the Department of Commerce and Insurance (TDCI).
The Tennessee report claims that Bitcoiin (not to be confused with Bitcoin) was offering securities in the state without registering with the TDCI Securities Division.
Officials cited the New Jersey’s cease-and-desist order against the startup when issuing the warning.
No other groups affiliated with the project had reportedly registered with the department either.
The project aims to aid investors by raising funds through a staking and depository process.
Perhaps its most notable trait, though, is the affiliate reward scheme it offers for those who refer others to the project.
According to the New Jersey order, Bitcoiin failed to disclose details about its leadership, developers, staff, or its brand ambassador, Steven Seagal.
The order was an effort by the state to protect investors from a potential fraudulent securities sale and was filed earlier this month.
Gurbir Grewal, New Jersey’s attorney general, said in a statement at the time the order was issued:
“While celebrity endorsements can add to the excitement and hype of cryptocurrency-related investments, they do not guarantee that an investment is sound or even legal.”
The warning from TDCI reminded Tennessee residents they should be “cautious when investing in cryptocurrencies.”
Citizens were also warned that digital currencies are not insured or regulated, and “are not backed by tangible assets.”
Frank Borger-Gilligan, TDCI’s assistant commissioner, said investing in such projects can be “risky”:
“Rushing into an investment that you don’t fully understand can be bad for your bottom line.
“We encourage Tennesseans to always conduct thorough research to learn the risks associated with the investments they are considering.”