Securities Division Continues Efforts to Halt Illegal Cryptocurrencies

Jefferson City, Mo. — Secretary of State Jay Ashcroft’s Securities Division today ordered Garland E. Harris and Troptions Corporation to show cause why restitution, civil penalties and costs should not be imposed after allegedly making misleading and deceitful statements in the sale of an unregistered cryptocurrency.

Troptions Corporation and Harris, based out of West Palm Beach, Florida, operate a business offering a cryptocurrency called “Troptions” to investors in exchange for cash or bitcoin. The division alleges they are offering or selling an unregistered security and making false and misleading statements in the sale of the security.

Troptions Corporation operates several websites and social media sites selling their currency. The sites appear to make exaggerated and misleading claims, including that their cryptocurrency will create millionaires and billionaires, that their currency isn’t subject to swings in value and that their currency is projected to be worth two to 20 times its value in a year.

“There are thousands of cryptocurrencies and digital coins being offered,” Securities Commissioner David M. Minnick said. “Be aware that if you invest in cryptocurrencies they are not assets that can be held in the custody of your broker or bank, but exist only in ‘digital wallets’. Investors shouldn’t provide any financial information before checking to see if the agent or firm is registered with our office.”

The division is seeking penalties of up to $60,000 from Harris and Troptions for allegedly selling unregistered, non-exempt securities, transacting business as an unregistered agent and making untrue statements in connection with the sale of a security.

This order is part of a continued effort by the division to identify and halt the sale of illegal cryptocurrencies, as well as inform Missouri investors of the risks of investing.

Ashcroft urges all investors to know the risks. If you have any questions about an investment opportunity or wish to check the background and registration status of a financial adviser, please call the toll-free investor protection hotline at 800-721-7996, or go online to www.missouriprotectsinvestors.com to file a complaint.

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Visit www.sos.mo.gov to learn more about the Office of the Missouri Secretary of State.