South Carolina Slaps ShipChain with Cease-and-Desist Order Over Unregistered Token Sales

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Image from “At all times relevant to this Order, Respondent ShipChain continuously offered investment opportunities in the ShipChain platform and the corresponding tokens to South Carolina residents through its website and in-person events held in South Carolina. At no time relevant to the events stated herein was Respondent ShipChain registered with the Division as a broker-dealer, and no exemption from registration has been claimed by Respondent ShipChain.”

ShipChain considers itself as an Ethereum-based platform that helps track the shipment of goods. The company is also a member of the Blockchain in Transport Alliance, with FedEx and JD.com as just some of its more prominent members.

Once finalized, the order would prohibit ShipChain from “transacting business” and “from participating in any aspect of the securities industry in or from the State of South Carolina”.

The startup was given 30 days to request a hearing on the matter, where it could contend the ruling on its token sales.

ShipChain declined to provide any comment on the matter. However, the startup acknowledged the order on their Twitter account, saying it was working on a formal response.

According to data from CoinMarketCap, ShipChain’s publicly traded token registered a 39% drop in value on Tuesday, trading at $0.65.

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