The US National Science Institute (NSI) has had to shut its doors after federal authorities raided its offices in December. The NSI had been offering to trade cryptocurrencies without the correct registration and Chris Boden – NSI Founder and CEO – took full responsibility for his actions. Boden is likely looking at a huge fine and multiple years behind bars for the company’s crypto trading activity.
An Emotional Farewell
Chris Boden founded the NSI back in 1994 under the name Geek Group in a bid to offer educational activities relating to the latest technological developments. Unfortunately for Boden and the team, NSI is being forced to sell off everything it has – meaning projects, technological artifacts, and equipment is all up for sale. Boden posted the heartbreaking news on Facebook, stating that what’s not sold by 31st January will head to the dump.
US Regulators Clamping Down on Illegal Trading
In America, offering the ability to trade cryptocurrencies is a dangerous game unless you’re regulated. The NSI was far from regulated or licensed. It appears to have been a goodwill service that was entered into unknowingly. NSI didn’t do this on purpose and Boden – along with his team – are completely shattered by the move from the FBI. Even so, the FBI and US Securities and Exchange Commission (SEC) has been cracking down on illegal crypto traders recently.
Other Firms Waiting for Approval
There are a number of firms out there with products ready to launch, but are holding off until they acquire the correct licensing from the SEC to avoid issues like NSI is facing. Prometheum is waiting for the SEC to give it the green light before it launches its security tokens to the public. Had NSI followed suit and gotten SEC approval for crypto trading, it wouldn’t have to shut down.
Pick Up Some Tech Goodies on the Cheap
Due to the fact that NSI is effectively in liquidation to pay off its huge debt, it’s selling off its equipment and stocked products on the cheap. This poses a great opportunity for tech enthusiasts to get their hands on state-of-the-art equipment at a massive discount. However, it’s unlikely that NSI will be accepting any form of crypto payments for these products given the amount of trouble that has already landed them in.
While it’s sad to see an institution like NSI vanish after so many years, it’s a lesson to other firms out there operating without the correct licenses – you will be caught. It wouldn’t be surprising if the SEC receives a number of applications for permits and licensing in the wake of this scandal
