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