KUALA LUMPUR: The Securities Commission (SC) has ordered the promoter of Lavidacoin to cease all promotional activities in relation to Lavidacoin with immediate effect, pending further review.
The SC said DSV Crypto Club, LUX Galaxies and VI Profit Galaxy, which were found to be promoting Lavidacoin, were also added to its Investor Alert List at www.sc.com.my.
“Investors are reminded to be cautious and exercise due diligence before participating in any investment schemes, in particular those involving cryptocurrencies and digital tokens,” it said in a statement today.
LaVida Coin is reportedly the brainchild of cosmetics queen Datuk Seri Dr Hasmida Othman, better known as Datuk Seri Vida.
On August 27, the SC said it was reviewing all available information to determine whether the offering of Lavidacoin breaches any securities law.
This came after SC received queries on the issuance of a whitepaper for the offering of Lavidacoin to the public.
The whitepaper claimed that Lavidacoin was offered as a private funding initiative to raise development capital or funds for three projects.
The paper also claimed that it was only through crowdfunding that such a diverse range of projects can meet the development funding needs.
On August 29, Bank Negara Malaysia listed VI Profit Galaxy, DSV Cryptoclub and LUX Galaxies, the operator of cryptocurrency called LaVida Coin in its financial consumer alert list.
The list consists of companies and websites which are neither authorised nor approved under the relevant laws and regulations administered by Bank Negara.
“Please take note that the list is not exhaustive and only serves as a guide to members of the public based on information and queries received by Bank Negara Malaysia,” it said on its website.