Shipchain, a blockchain startup to track shipments across the globe has been hit with a cease-and-desist order from the South Carolina Attorney General’s Office. The document ordered the company to stop all its activities on American soil for violating the state’s security statuses.
According to the official order sent out to Shipchain,
1. Respondent ShipChain offers investments related to cryptocurrency.
2. Specifically, Respondent ShipChain issues and offers units of its cryptocurrency, ShipCoin, as a means of accessing Respondent ShipChain’ s platform and as the only medium of exchange on the platform.
3. Respondent ShipChain, through its agents, offers investment opportunities in their tokens to South Carolina residents.
4. At all times relevant to this Order, Respondent ShipChain continuously offered investment opportunities in the ShipChain platform and the corresponding tokens to South Carolina residents through its website and in-person events held in South Carolina.
5. At no time relevant to the events stated herein was Respondent ShipChain registered with the Division as a broker-dealer, and no exemption from registration has been claimed by Respondent ShipChain.
6. At no time relevant to the events stated herein were the securities at issue registered with the Division or federal covered securities, and no exemption from registration has been claimed by the Respondent.
Though there are hundreds of ICOs operating within the United States, it is not clear why Shipchain was specifically targeted with the Cease and Desist from the state of South Carolina.
Shortly after the news broke out, Shipchain tweeted out that they were aware of the letter and that they were working with their lawyers to resolve this as quickly as possible. A few hours later, they posted additional tweet claiming they will have additional response soon and it was business as usual.
We’ll be posting an additional message shortly talking about this, but more importantly it’s business as usual for us here.
— ShipChain (@ShipChain) May 23, 2018
However, the price took a massive dive as the news broke. SHIP crashed by more than 50% from $0.106 to $0.053 and is currently trading at $0.064.