This week, the Massachusetts Secretary of State ordered five
companies, 18Moons, Across Platforms, Mattervest, Pink Ribbon, and
Sparko, to cease and desist from engaging in initial coin offering
("ICO") campaigns as
part of an ongoing government investigation of token sales.
The companies allegedly offered and sold unregistered securities in
violation of the Massachusetts Uniform Securities Act (Chapter 110A
of Massachusetts' General Laws) and corresponding
regulations. The orders, among other things, (1) prohibit the
companies from selling unregistered or non-exempt securities in
Massachusetts until they are in compliance, including filing a Form
U-2 Consent to Service of Process; (2) require the companies to
provide the Enforcement Section with written notice of securities
offerings prior to making future offers or sales; and (3) mandate
rescission of sales to investors that purchased the tokens at issue
prior to the order date, pursuant to specified terms.
