Earlier this month, the Quebec Autorité des marchés financiers (AMF), along with the Financial Markets Administrative Tribunal issued “conservatory orders” against Crypto Technologies Inc. (DBA Make It Mine), and principles David Fortin-Dominguez and Samory Proulx-Oloko for “failures to comply with the Securities Act.” The order was the result of a tribunal that took place in January that references CDN $300,000+ made by the investing public in the cryptocurrency mining business.
Jean-François Fortin, Executive Director of AMF Enforcement, commented
“In its decision, the Tribunal ruled for the first time that an investment offer related to cryptocurrency mining may constitute an investment contract—that is, a security whose distribution to the public is regulated. We urge investors who have had dealings with the respondents to quickly contact the AMF so we can identify and assist them.”
The aforementioned Tribunal has issued cease-trade orders against the respondents and the affiliated website and YouTube channel have since been shut down.
The Tribunal also ordered the respondents not to directly or indirectly dispose of, and to safeguard and maintain the integrity, of any device, equipment or machine in their possession that is used for the purpose of cryptocurrency mining.
Cryptocurrency mining quickly became a popular business in Canada due to inexpensive electricity for the energy-intensive service. As the value of most all crypto has declined, crypto mining has become less popular.
If crypto mining is deemed securities in Quebec it may jeopardize the entire industry in Canada.
The AMF asks that anyone who has invested money with the respondents to contact Ms. Hélène Guilbault at 1-877-525-0337, ext. 2427, no later than February 28, 2019.
