A BitClub Network investor warning has been issued by the North Carolina Securities Division.
The May 1st alert, which I only came across earlier today, warns the company’s
mining pool investment opportunity
is a security.
The Securities Division determined that the BitClub Network mining contracts are securities.
These securities are not registered, nor are they covered under federal law or exempt from registration.
Further, BitClub Network is not registered to sell them in North Carolina.
Acknowledging that BitClub Network isn’t officially marketed to US residents, nonetheless
the Securities Division has found that there are promoters of this scheme in North Carolina and they are providing instructions to enable investors to circumvent the geo-blocking technology.
The Securities Division issued one such BitClub Network affiliate in North Carolina with a letter of caution on May 21st.
Since receiving our Letter of Caution, the promoter has deactivated the website.
To the best of my knowledge BitClub Network operate in violation of local securities law in every jurisdiction they operate in.
North Carolina’s warning comes amid a steady decline in traffic to the BitClub Network website from February, 2018.
At the time of publication Alexa cite Japan (15%) and South Africa (13%) as primary sources of traffic.
With roots in the Zeek Rewards Ponzi scheme and having already
wiped burdensome initial investment contracts
, a continued downward trend will likely lead to BitClub Network collapsing again.
The owners of BitClub Network and top investors are believed to mostly consist of US citizens hiding abroad.
🤖 Quick Answer
What is the BitClub Network investor alert issued by North Carolina?The North Carolina Securities Division issued a May 1st alert determining that BitClub Network's mining pool investment contracts constitute unregistered securities. The company lacks proper registration to sell these securities in North Carolina, despite geo-blocking restrictions intended to prevent US access.
Why did North Carolina take action against BitClub Network?
The Securities Division found that promoters operating within North Carolina were actively circumventing the company's geo-blocking technology to enable local investors to purchase unregistered securities. This activity violated state securities regulations requiring proper registration and compliance.
What legal status do BitClub Network mining contracts hold?
BitClub Network mining contracts are classified as securities under North Carolina law. They are neither registered with state authorities nor covered by federal exemptions, making their sale to state residents illegal without proper registration and authorization.
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