Missouri Bitcoin operator ordered to pay civil penalties
SPRINGFIELD, Mo. (AP) _ A Springfield man who ran two bitcoin companies faces $30,000 in civil penalties.
The Springfield News-Leader reports that the Missouri secretary of state’s office finalized an order last month in a case against Kenneth A. Slaughter. Allegations include that unregistered, non-exempt securities were offered and sold. Slaughter is seeking a reconsideration of the order.
The office has halted investment activity with the companies _ Active Mining Corporation and Virtual Mining Corporation. Slaughter said they sold more than $6 million worth of Bitcoin mining hardware, in addition to stock worth hundreds of thousands of dollars.
Bitcoins are virtual currency that is used to buy and sell some goods and services without government-issued money. They are created by computers set up to resolve complex algorithmic formulas, which earns a person bitcoins.
Information from: Springfield News-Leader, http://www.news-leader.com