The Securities Commission in the Canadian province of Nova Scotia has issued an alert warning local investors to be wary of a crypto project/ICO sale called aGiftoken, which is not licensed to sell securities in the region.
aGifttoken is now selling a 10-20 million AGT tokens for the equivalent of one dollar each (in ethers) in an ICO (initial coin offering) sale that started July 5th.
The tokens are purportedly Ethereum compatible ERC-20 tokens being sold for ethers, the “currency” native to the Ethereum blockchain (one ETH currently trades for $228 USD).
The Securities Commission of Nova Scotia is warning the public that this project appears to emanate from Bucharest, Romania.
One of the risks in crypto markets is that tokens can be easily circulated across jurisdictions, but enforcing investor rights across borders is considerably harder:
“The Commission urges Nova Scotians to exercise extreme caution when dealing with firms that are not registered in Nova Scotia. It is illegal to solicit investments in Nova Scotia without registering with the Commission and complying with Nova Scotia securities laws. To see if a company or person is registered, you can check the Canadian Securities Administrators’ National Registration Search.”
Stephanie Atkinson, Acting Director of Enforcement with the Commission, says that a registration search should standard practice. “Always take the time to check registration and understand the risks and costs involved with your investments.”
aGifttoken’s landing page includes the same vague technobabble and sentimental rhetoric common to 2016/2017 “ICO mania” marketing materials.
“Offering people gifts is one of the most wonderful traditions, as it shows generosity and caring.”
“aGifttoken is an exceptional system that is created to rebrand gifting. It offers a method of cultivating trust between a gift sender and a gift receiver with the aid of Blockchain technology.”
“Our vision is to create a world in which you and your friends can celebrate the most important events regardless the geographical barriers. By using our platform we enhance the art of ensuring trust and confidence that makes gift senders to contribute more than initial estimated to the community they belong.”
As a member of the North American Securities Administrators Association (NASAA), the Nova Scotia Securities Commission is contributing to Operation Cryptosweep, a transcontinental, multi-agency effort to combat ICO fraud.
That operation has resulted in, “130 new investigations of Initial Coin Offerings (ICOs) and cryptocurrency-related investment products…(and) 35 enforcement actions.”
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