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In First, FINRA Files Fraud Complaint Against Crypto Broker

Sep 12, 2018

The Financial Industry Regulatory Authority (FINRA) has charged a Massachusetts resident with securities fraud for an unregistered token sale in a first for the self-regulatory organization (SRO).

Ayre allegedly sold unregistered securities in the form of the HempCoin token, which was said to represent an investment in his "worthless" company, Rocky Mountain Ayre (RMTN). FINRA announced the charges on Tuesday, adding that it filed a legal complaint against Ayre for misleading investors as well.

HempCoin was claimed to be "the first minable coin backed by marketable securities," according to promotional materials tied to the token sale. Ayre also contended that HempCoin was "the world's first currency to represent equity ownership." However, the token was never registered as a security and Ayre failed to apply for an exemption, according to FINRA.

Ayre has the chance to defend himself in front of a disciplinary panel if he chooses to respond to the claims. If he is found guilty, he may be fined, censured, suspended or permanently barred from the securities industry, as well as forced to pay restitution for damages.

Source & Full article: Coindesk

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