BlockBeats reported on November 22 that NetCents Technology Inc. and its founder and CEO, Clayton Leigh Moore, are set to face a formal hearing from the British Columbia Securities Commission (BC Securities Commission) in Canada. NetCents is being charged with selling securities without a prospectus or an exemption document and with making false statements during the promotion and sale of these securities.
The commission's documents show that NetCents sold a cryptocurrency, NetCents Coin, to around 500 investors between September and December 2017, raising approximately 3,341,040 Canadian dollars. Furthermore, the company developed a trading platform to facilitate the buying and selling of its cryptocurrency, operating it commercially without acquiring approval or recognition from the commission.
The allegations against the company include unlawful distribution, misleading statements, and operating a trading platform without due authorization. All of these are violations of multiple securities laws. The outcome of this formal hearing could have significant implications for NetCents Technology and its operations, as well as provide a cautionary tale to other companies within the cryptocurrency sector.