FINRA Unregistered Crypto

On Sep. 11, FINRA charged broker for selling crypto securities.

  • Timothy Ayre charged re unlawful distribution of unregistered security HempCoin.

Alleged Violations

  • Ayre tried to get investment in worthless public company, Rocky Mountain Ayre.
  • Publicized as HempCoin “the first minable coin backed by marketable securities”.
  • Ayre made and fraudulent, positive statements on RMTN business and finances.
  • RMTN quoted on Pink Market of OTC Markets Group and traded over the counter.
  • Ayre bought HempCoin rights and repackaged as security backed by RMTN stock.
  • Promised investors each coin is equivalent to 0.10 shares of RMTN common stock.
  • Investors mined more than 81 million HempCoin securities, through to late 2017.
  • They also bought and sold the security, by using two cryptocurrency exchanges.


  • Unlawful distribution of unregistered security as HempCoin was never registered.
  • In 2013-16, defrauded investors with false statements re nature of the business.
  • Failed to disclose creation and unlawful distribution, and many false statements.
  • FINRA stated that this was their first enforcement that involved cryptocurrencies.
  • No settlement, case will be adjudicated by hearing pane, FINRA sought penalties.