BCSC reaches $3.34-million settlement with Netcents
2025-04-23 20:05 ET - Street Wire
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by Mike Caswell
The B.C. Securities Commission has ordered former Canadian Securities Exchange listing Netcents Technology Inc. to repay $3.34-million to settle a case that arose from money that the company improperly raised in 2017. The BCSC said that Netcents raised the money without a prospectus and that the company made misleading claims, posting in an on-line video that it had "monthly revenue of $100,000 growing." In reality, the company's financial statements showed revenue for all of 2017 as being less than $100,000.
The $3.34-million payment is contained in a settlement agreement that the BCSC released on Wednesday, April 25. In addition to the monetary sanction, the BCSC has barred Netcents from promotional activities. The BCSC does expect to collect the $3.34-million, as the money has been frozen since Nov. 27, 2018.
The settlement comes about 1-1/2 years after the BCSC first began proceedings against Netcents, filing a notice of hearing on Nov. 20, 2023. The case arose from a cryptocurrency that Netcents created in November, 2017, that it named the Netcents coin. According to the BCSC, the company sold the coin to 500 investors, who paid a total of $3.34-million. The company claimed that the coin would be released in tranches of $5-million, with each coin having an initial value of $1 (U.S.).
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This'll be a first, won't it?
They'll get to keep the money that was frozen since Nov.27, 2018.
But what about the punters who originally provided the frozen funds? They'll still be sucking wind?
And who gets to keep the interest on the funds (surely someone paid, or should have paid, for the use of the funds over the six-and-a-half-year period)?
"Curiouser and curiouser", as Alice said in Wonderland
Posted by halcrow at 2025-04-23 21:33
The stock markets of Canada in conjunction with the USA stock markets all fell asleep when crypto was initiated, in the sense they all did not protect their and their listed company interests as being the sole providers of tradeable securities. With that should also include the Securities Commissions and SEC who did not lobby in conjunction with the exchanges the rspective governments to clamp down on the illegal crypto markets.
Crypto rug pulls, typical shyster pump and dumps, have evaporated trillions of wealth in the western world and ended up in chinese government run boiler rooms, where shockingly to the brain dead crypto traders the converted crypto tokens are used to buy gold which has doubled in two years.
Like the tulip scandal, this crypto coin scandal has the same affect.
With the stolen values converted to gold market trading, the crypto traders will be moving into trading junior gold stocks as at least there will be some assets in junior stock deals. Or will they just keep hoping not to be the one on the losing end of the rug pull?
Posted by oh at 2025-04-24 04:59
Does the $3million+ get returned to the investors? It should. If the regulators keep it, they are getting a 100% commission on the original ripoff.
Posted by Tony Simon at 2025-04-24 11:59
CBC update
A Vancouver-based company that created and sold its own cryptocurrency has been ordered to pay more than $3.3 million to the B.C. Securities Commission (BCSC) after admitting it illegally distributed securities and misled investors.
It says the funds, which were frozen in November 2018 by BCSC's order, will be returned to affected investors.
Posted by halcrow at 2025-04-25 19:10