New Jersey has cracked down on 5 crypto sites for running fraudulent investment schemes

REUTERS/Florence Lo/Illustration/File photo
New Jersey cracked down on five fraudulent investment schemes by crypto sites.

According to a statement, the state has ordered them to cease operating in the state.

Bulk Investments and Forte Trade were given cease and desist orders.

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According to the New Jersey Bureau of Securities and the New Jersey Attorney General, New Jersey has taken action against five cryptocurrency sites that are involved in fraudulent investment schemes.

Bulk Investments and Forte Trade were each issued five cease-and-desist orders.

All platforms, according to authorities, "used a variety of tactics common in investment scams to lure investors into fraudulent cryptocurrency-investment schemes." These included vague promises of profits, fake client endorsements, misleading disclosures, as well as failure to identify the principals.

According to the statement, none of these entities were registered with the Bureau to sell or offer securities in New Jersey or act as broker-dealers.

Three New Jersey investors were named in the order. They were all swindled of $90,000.

According to the statement, fraud committed by websites collectively includes:

Potential investors are not given the right information

Fake addresses listed for their business locations

Claim to be "registered", licensed, insured, or authorized

Fake testimonials of clients previously posted

"Online scammers are exploiting public interest in cryptocurrency investments opportunities," stated Acting Attorney General Bruck. "But we're fighting back."

As global regulators consider how to improve oversight of the $2.6 Billion industry, cryptocurrencies have been in tension.

As the market capitalization for digital assets continues to rise, multiple efforts have been made to limit different products.