SEC Fines Operator of Bitcoin and Litecoin-Based "Securities" Exchanges $58,000

A California man, Ethan Burnside, has been fined a total of $58,387.07 by the Securities and Exchange Commission (SEC) for breaching securities regulations through his operation of several digital currency platforms.

According to an SEC document, he was charged with marketing securities without registering with the commission. His sites included:

- LTC-Global Virtual Stock Exchange Stock Exchange A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the fin Read this Term, which offered shares in LTC-Global for litecoin.

- BTC Virtual Stock Exchange, a Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term-denominated securities exchange

- LTC-Mining, which sold bitcoin and litecoin-denominated "LTC mining bonds"

The websites ceased operating by October 2013.

He has also been banned from dealing in securities in a professional capacity for two years.

The document points out how Burnside fully and willingly cooperated with the SEC investigation. He promptly supplied data and evidence needed by the SEC and even retained financial audit experts to assist in the creation and formatting of reports.

The fine is comparable to the approximately $50,800 levied upon Erik Voorhees, who was charged by the SEC for offering shares in two bitcoin-related companies.

Curiously, more prominent bitcoin-based securities exchanges such as Havelock Investments and MPEx have yet to be charged. The lawyer handling the Voorhees case, Brian Klein of Baker Marquart LLP, declined requests for comment from DC Magnates. It is possible, however, that such investigations are already under way and take one to two years to come to fruition, as observed in the Voorhees and Burnside cases.