Following a notice from Securities Commission Malaysia last week that LavidaCoin may be in breach of securities law, the Commission has issued a notice for LavidaCoin to immediately halt the initial coin offering (ICO).
Securities Commission Malaysia stated the promoter must cease all activities regarding the promotion of LavidaCoin pending review by the SC.
DSV Crypto Club, LUX Galaxies, and VI Profit Galaxy, who were found to be promoting LavidaCoin, were also added to the SC’s Investor Alert List.
The LavidaCoin ICO was seeking to raise $1.5 billion to fund a plethora of activities including a wallet, an exchange, a payment gateway (LavidaPay) and a media entity. LavidaCoin was created by a well known Malaysian socialite who called the LavidaCoin the “step mother of coin.” Datuk Seri Vida, or Datuk Seri Dr Hasmida Othma, had entered popular Malay culture with a polished rags to riches story that captured the interest of the country.
The ICO is similar to many other offerings that is full of exciting predictions of success based on little more than hyperbole and hubris. One recent report referencing LavidaCoin stated the offering “will go down as one of the worst ICO projects in Malaysia.”
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