Edmonton man, crypto firm broke securities legal guidelines, regulator alleges

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A regulatory company is alleging an Edmonton man who runs a Bahamas-based cryptocurrency firm breached Alberta securities legal guidelines.

On Wednesday, the Alberta Securities Fee introduced it’s commencing a listening to on allegations Devon Christopher Edwards and KB Crypto Inc. engaged in unlawful distribution and unregistered dealings in securities.

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A discover of listening to alleges that between February 2021 and November 2022, Edwards and his firm raised round US$446,600 from 75 buyers and not using a prospectus, the doc that provides potential patrons details about a monetary safety.

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The fee additionally alleges Edwards and KB Crypto dealt in securities with out being registered beneath Alberta securities legal guidelines.

The case might be earlier than the fee in Calgary Oct. 11 to set a date for the listening to.

KB Crypto was integrated within the Bahamas in November 2021. Edwards is its sole director and shareholder, the fee states.

In accordance with a information launch, Edwards is alleged to have solicited funds for a pooled funding “to buy and commerce in contracts for distinction (CFDs) on the buyers’ behalf. By way of these CFDs, buyers may not directly take part within the value actions of foreign currency, cryptocurrencies, commodities and different property.”

The buyers — at the least 4 of whom had been Alberta residents — allegedly opened accounts by way of KB Crypto’s web site and transferred Bitcoin to Edwards, who then transformed them to US {dollars} or “stablecoins” — cryptocurrencies whose worth is pegged to real-world property such because the U.S. greenback. Edwards is then alleged to have used international buying and selling platforms to buy and commerce in contracts for distinction.