Genesis Ordered to Shut up Shop

The reason why the state’s Attorney General is filing the cease and desist then becomes apparent: “Genesis Mining continuously offered investment opportunities in Mining Contracts to South Carolina residents through its website.” It appears that Swiss Gold Global was selling the contracts on behalf of Genesis, but was not registered as a broker in South Carolina. This is illegal, the filing claims, because “investment contracts constitute securities, and an investment contract includes an investment in a common enterprise with the expectation of profits.For mining companies seeking to avoid having to register with the SEC – which is likely to be most of them – the smartest approach may be to avoid U.S. investors altogether. Moonlite, a project raising capital to construct mining datacenters in Iceland, is already taking that stance; U.S. investors are unable to participate in its token sale. Mining firms seeking investment, be it through cloud contracts or tokenization, may find their safest option is to omit U.S. states altogether.