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, which offered shares in LTC-Global for litecoin.
– BTC Virtual Stock Exchange, a bitcoin-denominated securities exchange
– LTC-Mining, which sold bitcoin and litecoin-denominated “LTC mining bonds”
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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.