A cryptocurrency scheme that promised easy returns has hit a legal wall in North Carolina, where state regulators just shut it down.

Power Mining Pool, a company claiming to operate cryptocurrency mining and trading operations, received a cease and desist order from North Carolina's Securities Division on March 2nd. The order effectively halts all business activity in the state and marks another significant enforcement action in the growing battle against crypto fraud.

Regulators aren't convinced the company is what it claims to be. The Securities Division couldn't even verify that Power Mining Pool's purported owners, Andrew and Mike Conti, actually exist. The company offers "mining pool shares" to investors—a product the Securities Division classifies as a security. Since neither Power Mining Pool nor its operators are registered to sell securities in North Carolina, they're operating illegally.

The violations run deep. Power Mining Pool failed to disclose who actually runs the operation or where it's located. Investors got no information about the company's assets, liabilities, or how they'd make money from their investment. The company never revealed details about its purported mining rigs—not their locations, computing power, mining records, or even proof they exist. The same goes for its claimed trading pool: no records, no proof it's real, no risk disclosures.

Perhaps most egregiously, Power Mining Pool never told investors that mining pool shares are securities, let alone that the company lacked proper registration. It also paid commissions to unregistered affiliates who sold these shares, another violation of state securities law.

The pattern mirrors a classic Ponzi scheme structure. Earlier analysis concluded that Power Mining Pool operated on a simple formula: 50 euros in, 70 euros out. New investor money pays returns to old investors, with operators taking their cut. The mining operations and trading pool appear to be cover stories for what amounts to straight fraud.

Power Mining Pool can challenge the cease and desist within twenty days by requesting a hearing. If regulators don't hear from the company within thirty days, the order becomes permanent. Either way, the operation is finished in North Carolina.

This enforcement action puts North Carolina in company with Texas as states taking cryptocurrency fraud seriously. As crypto schemes continue to dupe investors with promises of passive income from mining and trading, regulators are finally catching up. Power Mining Pool's shutdown sends a clear message: make false promises about returns, hide your identity, and ignore securities law, and you'll face action from state authorities.

🤖 Quick Answer

What action did North Carolina's Securities Division take against Power Mining Pool?
North Carolina's Securities Division issued a cease and desist order to Power Mining Pool on March 2nd, halting all business activities in the state. Regulators determined the company's "mining pool shares" constitute unregistered securities and could not verify the existence of the purported owners, Andrew and Mike Conti.

Why did regulators classify Power Mining Pool's offerings as securities?
The Securities Division classified "mining pool shares" sold by Power Mining Pool as securities because they represent investment contracts offering returns to investors. The company failed to register these instruments properly, violating state securities regulations and prompting enforcement action.

What concerns prompted the regulatory investigation of Power Mining Pool?
Regulators questioned whether Power Mining Pool operated legitimate cryptocurrency mining and trading operations. The Securities Division could not verify the existence of the company's claimed owners and suspected the scheme was designed to de

🔗 Related Articles

- SEC files for default judgment against remaining DFRF defendants
- Meta Whale securities fraud warning from Canada (QC)
- Kuvera Global launches new unregistered securities, SEC still asleep
- Dawn Wright-Olivares pleads guilty to fraud
- USI-Tech securities fraud cease and desist issued in Ohio