ShipChain Rejects Claims of Securities Laws Violations by Authorities.
As per a statement on May 24, ShipChain, a logistics and supply chain has denied the claim of South Carolina regulators that it crossed paths with state security laws.
Recently, ShipChain was issued a cease-and-desist order from the South Carolina Attorney General’s office. The order asserted that the company was putting forth securities to state inhabitants without being enlisted as an intermediary merchant by the proper authorities. The offerings that are being referred to are the SHIP tokens, which can be utilized to make transactions on the startup’s Ethereum-based stage.
The order stated:
“At no time relevant to the events stated herein was Respondent ShipChain registered with the Division as a broker-dealer, and no exemption from registration has been claimed by Respondent ShipChain… At no time relevant to the events stated herein were the securities at issue registered with the Division or federal covered securities, and no exemption from registration has been claimed by the Respondent.”
In their announcement, ShipChain says that the state commissioner did not get in touch with them to confirm any of the cases levelled against the organization. As indicated by ShipChain, their private token deal was conducted as per the appropriate security laws and that it was held in January before the company moved its development team to the province of South Carolina.
Furthermore, ShipChain is claiming that they have not been “offering, issuing, or selling” tokens since the private sale, nor do they have plans to do as such “in the foreseeable future.” The firm additionally keeps up that the tokens were just sold to qualified financial investors, among whom none were South Carolina business or occupants. They reported:
“ShipChain is not aware that SHIPs were even offered in South Carolina or to any South Carolinian during the private sale.”
As per the cease-and-desist order, It has 30 days to request a hearing to clarify the matter