Share this article
South Carolina Sanctions Startup Over Unregistered Token Sales
South Carolina securities regulators have ordered ShipChain to cease selling its tokens within the state.
By Nikhilesh De
Updated Dec 10, 2022, 7:59 p.m. Published May 22, 2018, 9:07 p.m.
Blockchain startup ShipChain has been hit with a cease-and-desist order from the South Carolina Attorney General's Office, which claimed the company violated the state's securities statutes.
The state's Securities Commissioner said in an order issued Mondayhttp://2hsvz0l74ah31vgcm16peuy12tz.wpengine.netdna-cdn.com/wp-content/uploads/2018/05/ShipChain-Inc-Administrative-Order-to-Cease-and-Desist-COS-01685821xD2C78.pdf that ShipChain offered what amounts to an investment contract by way of its token, which is "the only medium of exchange on the platform."
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The order stated:
"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. 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."
ShipChain bills itself as an ethereum-based platform for tracking the shipment of goods. It's also a member of the Blockchain in Transport Alliance, which counts major firms such as FedEx and JD.com among its ranks.
The order – if finalized – would bar ShipChain from "transacting business" and "from participating in any aspect of the securities industry in or from the State of South Carolina." The startup has 30 days to request a hearing on the matter, where it may argue that its token sales do not qualify as an unregistered securities offering.
A request for comment was not immediately returned by ShipChain. However, the startup acknowledged the order on Twitter and said it was working on a formal response.
We are aware of the letter that was sent to us by the Attorney General of South Carolina. Rest assured that our lawyers are working on responding as fast as they can. We will keep you updated as soon as we have more information.
— ShipChain (@ShipChain) May 22, 2018
ShipChain's publicly traded token saw a steep drop in value on Tuesday, and as of press time is trading at $0.065 – down 39 percent compared to yesterday – according to data from CoinMarketCap.
Shipyard image via Shutterstock
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Asia Morning Briefing: Bitcoin Drifts Near $89K as Traders Step Back and Balance Sheets Step In
FlowDesk sees fading post-Fed demand and low leverage, while Glassnode data show digital asset treasuries quietly resuming bitcoin accumulation in a range-bound market.
What to know:
- Bitcoin traded near $89,000 as liquidity thinned and demand faded following a recent Fed rate cut.
- Market caution persists with BTC and ETH retracing gains, while altcoins remain under pressure.
- Gold maintains near-record highs due to rate cuts and central bank demand, while Asian markets opened lower amid cautious investor sentiment.
Top Stories
