The U.S. Securities and Exchange Commission (SEC) has imposed a cease-and-desist order on Canada-based crypto investment firm NextBlock Global for violating securities law. Its CEO Alex Tapscott also received a $25,000 penalty. The company, which made plans to list on the Toronto Stock Exchange, also agreed to pay a $700,000 CAD (approximately $520,000) administrative penalty as part of the agreement with Ontario Securities Commission.
According to the SEC, the company had been offering securities to U.S. investors despite “neither NextBlock nor its securities [having] ever been registered with the Commission in any capacity." The company also reportedly falsely advertised to investors that four “prominent” figures in the blockchain industry were serving as its advisors.