Tennessee Announces Actions against Internet Cryptocurrency Company ‘Bitcoiin’

(Nashville, TN – Insurance News 360) – Tennessee Securities Team Alerts Investors to Internet Crypto Company ‘Bitcoiin’

On March 22, the Tennessee Department of Commercen and Insurance Securities Division announced that consumers should be aware of actions against an Internet cryptocurrency company called Bitcoiin, after the State of New Jersey issued a cease and desist order to Bitcoiin, which is also known as Bitcoiin B2G. This is NOT Bitcoin, nor are the two affiliated in any way.

New Jersey issued the cease and desist order on March 7. The company offered investments to the public and New Jersey residents, in the Bitcoiin ICO and ‘Bitcoiin Staking Program’ through a website that announces an expectation that each B2G will be worth $388 by December 2018.

New Jersey’s filing told respondents to stop selling securities unless they had been registered, and to stop acting as broker-dealers, or agents in the state.

The Tennessee Department of Commerce and Insurance wants Tennessee residents to know that none of the companies, promoters, or specific investments related to Bitcoiin are registered in the state.  It also urges caution when individuals invest in cryptocurrencies, which are created and stored electronically in the blockchain, which is a public database that permanently records digital transactions.

They are not insured or controlled by a central bank or other governmental authority, cannot always be exchanged for other commodities, and are subject to little or no regulation.

“Rushing into an investment that you don’t fully understand can be bad for your bottom line,” said TDCI Assistant Commissioner Frank Borger-Gilligan. “We encourage Tennesseans to always conduct thorough research to learn the risks associated with the investments they are considering.”

In order to help protect consumers, TDCI reminds investors to keep watch for common “red flags” of investment fraud:

“Guaranteed” high investment returns. There is no such thing as guaranteed investment returns, and there is no guarantee that the cryptocurrency will increase in value. Be wary of anyone who promises a high rate of return with little or no risk.

Unsolicited offers. An unsolicited sales pitch may be part of a fraudulent investment scheme.  Cryptocurrency investment opportunities are promoted aggressively through social media. Be very wary of an unsolicited communication—meaning you didn’t ask for it and don’t know the sender—about an investment opportunity.

Sounds too good to be true. If the project sounds too good to be true, it probably is. Watch out for exaggerated claims about the project’s future success.

Pressure to buy immediately.

Tennesseans who have invested with Bitcoiin are urged to contact TDCI by phone at (615) 741-5900 or by email at securities.1@tn.gov.

Source: Tennessee Department of Commerce & Insurance (TDCI).