Cease and Desist Order Against Genesis Mining Today Withdrawn

Founded in 2013, Genesis Mining is still among the largest companies supplying cloud mining services to blockchain companies. According to Iceland, it is allegedly among the nation’s largest consumers of power.
Tracy Meyers, the deputy securities commissioner, declared the end of this cease and desist on July 26, 2018:

After five long months of operating with South Carolina officials, Genesis Mining was dropped in the cease and so that it came back in March 2018 in the South Carolina Securities Division. The business will relaunch to U.S.-based customers shortly. This marks one of the very first times per blockchain company has fought back against regulators and been successful.
Hafizi combined the Genesis Mining staff back in April 2018. He previously served as the chief compliance officer at BlackRock, Inc., a global investment management firm, where he oversaw both electronic and tech ventures. Amongst his duties using Genesis Mining is directing the company’s global government and regulatory affairs. In addition, he works to form the company ’s funding frame and encourage its initiatives in the Americas.

After Genesis Mining was first issued the cease and desist, mining contracts offered to residents were believed securities. According to the state’s Securities Commission office, Swiss Gold Global — that was also named in the cease and desist — was alleged to be working as a broker-dealer for Genesis Mining. Representatives stated that the company wasn’t registered in South Carolina and was so licensed to sell or offer securities to residents.

Shah Hafizi, chief obedience officerCOO and general counsel at Genesis Mining, released the following statement:

He continued on to say, “By working together with regulators, so we could guarantee that shareholders are protected, and innovation isn’t stifled. We consider for the business to attain its true potential, companies and regulators need to collaborate. We strongly promote blockchain providers, irrespective of where they’re in the whole world, to proactively engage with local regulators at all levels. ”

Published at Fri, 27 Jul 2018 23:37:41 +0000
At press time, the cease and desist order against Swiss Gold International remains active.
&ldquoWe are happy to announce that the South Carolina securities division has dismissed Genesis Mining out of its March 9, 2018, cease and desist. One of our company[‘s] principles is transparency. It is a value of blockchain technologies. Within the previous five months, we’ve worked closely with South Carolina officials to educate them and provide a practitioner’s viewpoint on exploration, blockchain networks and the decentralized character of the technologies we support. ”

Buyers could buy specific amounts of computing power within certain periods which were then hosted on third party platforms. This constituted investment contracts or securities per the Commission office. Authorities then hammered both Genesis Mining and Swiss Gold Global from doing business over the country, and the two companies were barred from offering securities from South Carolina in the future.
“The Securities Division of the Office of the Attorney General of the State of South Carolina, later getting information regarding matters detailed in the Administrative Order to Cease and Desist issued … upon due consideration of such info, finds good cause was shown to vacate the [order]. ”