Burr & Forman

09.13.2018   |   Blockchain & E-Transactions Law, Blog Articles, Cryptocurrency, FINRA

FINRA’s First Crypto Enforcement Action

On September 11, FINRA announced its filing of an enforcement action accusing a Massachusetts broker of fraud and registration violations arising from his sale of an unregistered cryptocurrency, “HempCoin.”  It is FINRA’s first cryptocurrency enforcement action.

FINRA alleges Timothy Ayre of fraudulently attempting to bolster his worthless public shell company, Rocky Mountain Ayre, Inc. (RMTN in the OTC pink sheets).  Ayre alleged repackaged HempCoin as a security backed by RMTN common stock, marketing it as “the world’s first currency to represent equity ownership” in a public company.  FINRA also alleges Ayre misrepresented RMTN’s financial condition.

The Complaint is here:  http://www.finra.org/sites/default/files/Ayre_Complaint_091118.pdf

Thomas K. Potter, III (tpotter@burr.com) is a partner in the Securities Litigation Practice Group at Burr & Forman, LLP. Tom is licensed in Tennessee, Texas and Louisiana. He has over 32 years’ experience representing financial institutions in litigation, regulatory and compliance matters.  See attorney profile. © 2018 by Thomas K. Potter, III (all rights reserved).


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