New Jersey takes legal action against online rental marketplace for ICO token

The state of New Jersey has filed a three-count lawsuit against a blockchain online rental marketplace Pocketinns for carrying out an unregistered securities sale.

New Jersey Attorney General Gurbir S. Grewal and the state’s Bureau of Securities within the Division of Consumer Affairs made the announcement.

Pocketinns and its CEO Sarvajnya G. Mada have been accused of selling more than $400,000 of unregistered securities in New Jersey during their Initial Token Offering (ICO) in 2018. PINNS tokens were available to investors in exchange for ether and the company hoped to raise up to $46 million by selling up to 30 million PINNS, with 1 eth being the minimum investment. 

Since the company never registered with the Bureau of Securities, the state accuses the company of violating New Jersey’s Uniform Securities Law. The state also accuses Mada of acting as an unregistered agent.