By working with the Texas State Securities Board, Nui has proven that we are committed to doing things the right way. - Darren Olayan, Nui CEO
LEHI, Utah (PRWEB) February 26, 2019
Nui Social agreed to a settlement with the Texas State Securities Board (TSSB) that clears it of all fraud charges related to its cryptocurrency mining business and removes Kala mining rigs from the order. As publicized in July of 2018, Nui was issued a notice from the TSSB in regards to some of its cryptocurrency mining products. After seven months working cooperatively with the TSSB, Nui announces that the investigation has now been resolved (order no. ENF-19-CDO-1774).
“Weeding out the good and the bad players is a necessary step in the progression of blockchain technology and cryptocurrency,” Darren Olayan, Nui CEO, said. “By working with the Texas State Securities Board, Nui has proven that we are committed to doing things the right way.”
Nui disputed the core allegations in the notice and presented to the TSSB compelling arguments why their products are not subject to securities laws in Texas. Recently, they decided it was in the best interest of their business and members to settle the issue directly with the TSSB rather than proceed to a hearing with a neutral arbiter.
On Feb. 21, 2019, Nui consented to the entry of an agreed order (Order No. ENF-19-CDO-1774) in which the TSSB concludes that two of Nui’s products should have been registered as securities before being sold to Texas residents, Nui should have registered in the state before offering the products for sale in Texas, and that Nui will pay a fine. This is not an admission of fault. In fact, Nui disagrees with the legal conclusion that the TSSB reached, but is pleased that the matter is now behind them.
In addition, the TSSB agreed to remove all allegations of fraud from the order and that the offer of Kala mining rigs did not constitute a securities offering, as the TSSB had originally alleged. In the near future, Nui will make a rescission offer to Texas residents who purchased the products. As part of the agreement, this rescission offer is also not an admission of guilt.
Olayan stressed that Nui strives to abide by all relevant laws and regulations and will continue to do so. "We have been very careful and strategic in how we move forward. With so many factors affecting today’s crypto space, it’s important that we take the best steps to protect our company, our members and our products,” he said. Therefore, moving forward Nui will not offer any cryptocurrency mining products to Texas residents and they ask their members not to solicit Texas residents, with strict penalties for violation of this policy.
Nui understands that as the crypto space continues to evolve, legislators, regulators, and businesses will have to adjust to make room for this new technology. Now that they are in good standing with the Texas State Board of Securities, Nui is looking forward to that bright future. “We’re thrilled to be on the front lines of this new evolution,” Olayan said.
Nui harnesses the power of the blockchain revolution by strategically providing ways for their members to participate and earn with blockchain and cryptocurrency. Find out more about Nui Social at https://nui.social.