The Securities and Exchange Commission (SEC) has ordered Riscoin and affiliated entities to halt their crypto investment scheme, saying they were illegally soliciting money from the public.
In a May 14 cease-and-desist order, the SEC’s Enforcement and Investor Protection Department directed Riscoin to shut down its online operations.
The order also covered Riscoin Exchange, Riscoin Trading, League of Seagull Lt., Seagull Alliance, as well as their leaders, agents and officers.
The SEC barred the groups from moving funds or disposing of assets, including bank deposits, to preserve money for investors.
Riscoin allegedly enticed participants through a copy-trading scheme, asking them to place funds on its websites and follow signals from “crypto managers” promising “unusually high and guaranteed daily returns.”
The SEC said Riscoin continued soliciting investments despite advisories issued in February 2026. Investigators found the group was not registered as a corporation or partnership, held no license to sell securities, and had not registered any securities with the Commission. It also lacked authorization to operate as a crypto-asset service provider.
“The act of [Riscoin] through their leaders and/or its agents in selling/offering unregistered securities operates as a fraud to the public which, if unrestrained, will likely cause grave injury or prejudice to the investing public,” the order said.
“Further, unless restrained, the act of [Riscoin] through their leaders and/or its agents in selling/offering unregistered securities constitutes a continuing violation of the provisions of the SRC and the FCPA,” it added.
